European Shares Surge Amid Optimistic Earnings and Eased Trade Tensions
European shares reached a six-week high, boosted by positive results from Deutsche Bank and BNP Paribas and optimism over an EU-U.S. trade agreement. The pan-European STOXX 600 index saw gains, lifted by a surge in banking stocks and easing trade tensions. The ECB's rate decision is in focus.
European shares soared to a six-week high on Thursday, buoyed by strong earnings reports from major banks such as Deutsche Bank and BNP Paribas. This optimism is bolstered by prospects of a new trade agreement between the EU and the U.S. The STOXX 600 index climbed by 0.5% following these encouraging developments.
In regional markets, Germany's DAX rose 0.9%, while the UK's FTSE 100 advanced 0.6%, nearing a record peak. Deutsche Bank, which posted better-than-expected second-quarter profits, saw its shares ascend by 5.8%, with BNP Paribas climbing 2.8%. The eurozone banks index reached its highest level since 2008, supported by rising government bond yields.
The EU-U.S. trade agreement proposes a 15% tariff on imports, significantly lower than the anticipated 30%. This move is expected to sustain supply chains without steep price hikes, indicative of eased global trade tensions. Meanwhile, Nestle and STMicro faced declines due to strategic reviews and quarterly losses, respectively.
(With inputs from agencies.)
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