German DAX 30 Returns to the Highs After EU Tariff Delay, FTSE 100 Lags
European stocks kicked off the week with strong gains, with DAX returning to the highs, buoyed by a delay in proposed U.S. tariffs that...
Quick overview
- European stocks opened the week with strong gains, driven by President Trump's decision to delay U.S. tariffs on EU goods.
- Germany's DAX 30 index surged over 1.5%, reaching all-time highs, reflecting renewed investor confidence in industrial and export sectors.
- The FTSE 100 lagged behind, closing slightly lower due to a stronger pound and weakness in the energy sector.
- Overall, the market sentiment shifted positively, with cautious optimism for potential trade negotiations ahead of the July 9 deadline.
European stocks kicked off the week with strong gains, with DAX returning to the highs, buoyed by a delay in proposed U.S. tariffs that revived risk appetite across the region, while the FTSE 100 lagged.
Markets Climb After Trump Postpones EU Tariffs
European equity markets rallied at the start of the new trading week after President Trump agreed to delay the imposition of steep tariffs on European Union goods. The move followed a phone call with European Commission President Ursula von der Leyen, during which both leaders reportedly agreed to maintain regular communication and accelerate negotiations.
Trump’s decision to postpone the 50% tariffs until July 9 provided a critical breather for European investors, who had grown increasingly nervous about the potential impact on trade. The markets interpreted the delay as a tactical move—typical of President Trump’s negotiation style—intended to pressure the EU into making concessions without resorting to immediate escalation.
DAX Surges Back to Record Levels
Germany’s DAX 30 index led the charge, jumping over 1.5% and reclaiming last week’s all-time highs. The index was buoyed by renewed investor confidence, particularly in the industrial and export-heavy sectors that would be most vulnerable to transatlantic tariffs.
The tone in the market shifted significantly compared to previous sessions, where little progress had been made since April. With negotiations now reportedly fast-tracked, traders are cautiously optimistic that a deal might be struck before the July deadline.
European Stock Market Closing Summary
- DAX (Germany) ended the day at 23,997.44 points, marking a strong gain of +367.86 points (+1.56%). The rally reflects broad investor optimism in the German market, with tech and industrial sectors driving momentum.
- CAC 40 (France) climbed to 7,828.13 points, posting an increase of +93.73 points (+1.21%). French equities benefited from gains in luxury and energy shares, which saw strong demand.
- IBEX 35 (Spain) closed at 14,221.60 points, up +117.50 points (+0.83%), supported by banking and infrastructure stocks amid renewed investor confidence in Southern Europe.
- FTSE 100 (UK) bucked the trend, finishing slightly lower at 8,717.97 points, a drop of −21.29 points (-0.24%). Weakness in the energy sector and a stronger pound weighed on the index.
- FTSE MIB Total Return Index (Italy) surged to 39,988.48 points, gaining +513.12 points (+1.30%), boosted by robust performance in financials and consumer discretionary stocks.
FTSE Struggles Despite Recovery
In contrast, the UK’s FTSE 100 ended the session slightly lower. Though the London Stock Exchange was closed, derivatives trading suggested a mild decline. The index recovered from heavier early-session losses of around 1.2%, closing much closer to flat. The UK market remained under pressure from a stronger pound and energy sector underperformance.
Conclusion: Trump’s decision to delay tariffs has sparked a notable shift in European market sentiment. While skepticism remains over the long-term trajectory of trade talks, investors welcomed the short-term relief and the potential for diplomatic progress. With just weeks left until the July 9 deadline, the coming sessions will likely be driven by headlines from Brussels and Washington.
German Dax 40 Index Live Chart
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