Overview

• European stocks rallied on hopes of a tariff compromise, with the CAC 40 up 0.67% to 7,931.60 by 10:00 CET and Germany’s DAX and the FTSE 100 reaching new intraday peaks.
• President Trump extended the deadline for a deal from July 9 to August 1 and notified trading partners of intended 25% to 50% tariffs on imports.
• The EU is negotiating to keep US duties at 10% for its exports and secure sector exemptions in aerospace, cosmetics and alcoholic beverages.
• Analysts argue that strong corporate fundamentals and business adaptability could offset the impact of additional tariffs on earnings.
• Observers caution that if the new duties show up in economic indicators they could dampen growth or push up inflation in Europe.