European stocks are rising due to optimism in US EU trade deals
European stock markets experienced gains as anticipation grew surrounding a potential trade deal between the US and the European Union.
The Stoxx Europe 600 index increased by 1.1%. In particular, the UK’s FTSE 100 saw a rise, and Germany’s index climbed by 0.4%. France’s CAC 40 posted a notable 1.4% increase.
Additionally, futures for the Stoxx Europe 600 rose by 1.8%, according to data from Factset.
In stock on the move: Temenos increases by 21%, and cars increase as Nokia slides
Temenos, a Swiss banking software company, saw its shares surge by 21% following a report that quarterly revenue exceeded expectations, rising 17% from the previous year. The company’s operating profit increased by 30%, aided by new contracts and continued cost savings.
European markets are profiting amid US trade optimism
European stocks remained strong during early afternoon trading, with the Stoxx 600 index rising by 0.95%. The UK FTSE 100 slightly retreated, but was still up by 0.44% after recently hitting record highs.
The positive global market sentiment was largely driven by news about US trade agreements, especially with ongoing negotiations involving the EU.
4% of car stocks jump
The Stoxx Europe Automobiles and Parts Index jumped by 4.3% following significant trade deals between Japan and the US, which were mentioned by President Donald Trump. Notable gains were seen in companies like Porsche, which went up by 7.4%, and Stellantis, which increased by 7%.
Temenos Shares Pop 21%
Temenos shares saw a significant 21.2% rise, according to reports, as the chief financial officer announced an end to recent tariff-related difficulties affecting transactions. The company also revised its revenue growth guidance upwards, indicating positive earnings growth expectations for the current fiscal year.
SAP shares DIP as macro uncertainty, and FX hits the growth of covered profits
Shares of SAP fell by 2.3% as the company reported an increase in revenues but fell short of analysts’ projections. While SAP maintained its annual outlook, it noted significant macroeconomic uncertainty and adverse effects from currency fluctuations.
ASMI shares will be sold after ingestion of “rutty” orders
Shares of ASM International dropped by 10% following disappointing quarterly bookings of €705 million, which were lower than analyst expectations. The company characterized its recent order intake as “lumpy” during the last quarter.
German car rally
Stock prices for major German car manufacturers rose sharply, buoyed by the EU’s negotiations to potentially lower tariffs amid the recent US-Japan trade agreement. Companies like Porsche, Volkswagen, and BMW all saw notable gains exceeding 4%.
Nokia shares fall 7% after warning of a $94 million tariff hit
Nokia’s shares declined by 7% following the company’s profit warnings. The company revised its operating profit expectations down significantly, impacted by currency fluctuations and tariffs that could cost between €50 million to €80 million annually.
European markets are open higher
European stocks opened positively, with the Stoxx 600 rising 0.9% and the auto sector climbing 3.5%. This response followed a major trade deal announcement between the US and Japan.
Iberdrola’s profits settled in the first half
Iberdrola reported a 14% decline in net profit for the first half, totaling €3.6 billion. To support future investments, the company initiated a capital increase of €5 billion while also facing a significant impairment loss on major wind projects due to regulatory changes.
Strong defence demand boosts Thales’ profits
Thales reported stronger-than-expected profits, leading to a raised sales guidance for the year, primarily driven by robust performance in aerospace and defense sectors. However, concerns over potential tariffs were noted.
Unicredit lifts profit guidance and leaves a bid for Banco BPM
Unicredit upgraded its profit guidance, reporting a 25% increase in second-quarter net income, despite withdrawing its acquisition bid for Banco BPM due to opposition from regulators.
This is the opening call
European markets are set for a positive start as futures indicate. The CAC 40 and the German DAX are up by 1% and 1.2%, respectively, as investors monitor the developments concerning US trade tariffs.
