logo
European markets set to open higher as traders assess global trade, economic outlook

European markets set to open higher as traders assess global trade, economic outlook

CNBC2 days ago
General view of the City of London skyline, the capital's financial district, in October.
Sopa Images | Lightrocket | Getty Images
Welcome to CNBC's live blog covering all the action in European financial markets on Wednesday, as well as the latest regional and global business news, data and earnings.
Futures data from IG suggests European markets will open higher, with London's FTSE looking set to open 0.2% higher at 8,804, Germany's DAX 0.4% higher at 23,803, France's CAC 40 up 0.5% at 7,702 and Italy's FTSE MIB up 0.6% at 39,841.
The positive start expected in Europe comes as global markets assess the status of trade talks and the prospect of deals before U.S. President Donald Trump's 90-day reprieve from higher import duties expires on July 9.
Traders are also digesting the latest comments from U.S. Federal Reserve Chair Jerome Powell, who said the central bank would have already cut interest rates if it weren't for U.S. President Donald Trump's tariff initiatives. Trump has repeatedly criticized Powell for the central bank's rate policy.
U.S. stock futures were little changed overnight, after investors began the second half with a reduced appetite for technology stocks. Singapore stocks hit a record high overnight amid mixed trading in the Asia-Pacific region.
— Holly Ellyatt
European Central Bank President Christine Lagarde arriving for the morning session at the ECB Forum on Central Banking 2025 in Penha Longa Resort on July 1 in Sintra, Portugal.
Horacio Villalobos | Corbis News | Getty Images
European traders will be keeping an eye on more action from the European Central Bank forum in Sintra, Portugal, on Wednesday, with ECB President Christine Lagarde due to address policymakers today.
CNBC has interviewed a number of central bank governors and officials at the forum, including ECB Chief Economist Philip Lane, Portugal's central bank Governor Mario Centeno and q
It's widely expected that the ECB will lower its key rate, the deposit facility rate, in September, after data released Tuesday showed the euro zone inflation rate hit the central bank's 2% target.
On the data front, unemployment figures are due from Spain, Italy and the wider European region.
There are no major earnings reports in Europe on Wednesday.
— Holly Ellyatt
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump's 'big beautiful' budget bill includes a new tax break worth up to $2,000—around 90% of filers could take advantage
Trump's 'big beautiful' budget bill includes a new tax break worth up to $2,000—around 90% of filers could take advantage

CNBC

time10 minutes ago

  • CNBC

Trump's 'big beautiful' budget bill includes a new tax break worth up to $2,000—around 90% of filers could take advantage

House Republicans on Thursday voted to pass President Donald Trump's massive budget bill, making good on a promise to deliver the legislation to the president's desk by July 4. The bill promises continuity for taxpayers by permanently extending the cuts from the 2017 Tax Cuts and Jobs Act as well as a raft of new cuts, including breaks for tipped and overtime income. The new law also includes a throwback: an above-the-line deduction on charitable contributions. The bill allows taxpayers who don't itemize to deduct up to $1,000 for single filers and $2,000 for married couples filing jointly. "This could provide some tax savings for folks," says Erica York, vice president of federal tax policy at the Tax Foundation. "That could be something unexpected if you're not currently deducting charitable giving." Most people don't currently deduct charitable contributions — and it's not because they're not generous or don't want a tax break. Other than under the Covid-19 relief bill, taxpayers generally have had to itemize deductions in order to get a break for charitable giving. For most people, that doesn't make sense. Some 9 in 10 taxpayers take the standard deduction, which in 2025 is $15,000 for single filers and $30,000 for joint filers. You'd typically only itemize if the sum of your deductions would save you more money than just taking the standard deduction. In short, the new law allows anyone who donates to charity to get a tax break — not just the mega-philanthropists among us. Because these deductions reduce your taxable income, they're the most beneficial for people in the highest tax brackets. A $1,000 deduction from income is effectively worth $100 to someone in the 10% tax bracket. The same deduction is worth $350 to someone in the 35% bracket. You'll still have to follow the IRS' rules on charitable giving to get the break. Donations must be made to qualifying charitable organizations — donations to political campaigns, crowdfunding efforts and, in the case of the proposed tax break, donor-advised funds won't be eligible. Before you make a donation you plan on deducting, check the IRS' search tool to make sure the organization is tax-exempt. And be sure to get a receipt for your donation; the IRS generally requires written acknowledgement of any donation in excess of $250.

Medicaid Cuts Could Take Effect In 2026, Experts Say
Medicaid Cuts Could Take Effect In 2026, Experts Say

Forbes

time12 minutes ago

  • Forbes

Medicaid Cuts Could Take Effect In 2026, Experts Say

The House voted to pass President Donald Trump's megabill Thursday, which cuts more than $1 trillion in Medicaid and federally funded health care programs over the next 10 years, and is now heading to Trump's desk—meaning states and recipients could start seeing real changes or funding cuts as soon as next year, experts say. House Majority Leader Steve Scalise, R-La., arrives as House Republicans work to pass President ... More Donald Trump's signature bill of tax breaks and spending cuts by a self-imposed Fourth of July deadline, at the Capitol in Washington, Wednesday, July 2, 2025. (AP Photo/J. Scott Applewhite) Copyright 2025 The Associated Press. All rights reserved The bill would limit how states fund Medicaid programs, including a phased reduction in provider taxes starting 2026, and the introduction of work requirements which would take effect in 2027—changes experts say could force states to cut services, reduce enrollment or find new funding within the next few years. Leah Rosenstiel, an assistant professor of political science at Vanderbilt University, told Forbes the bill won't implement all its Medicaid changes at once, but said some states could be forced to rethink their Medicaid financing strategies almost immediately. Rosenstiel said the existing 6% limit on taxes that states can impose on health care providers—which is how they raise revenue and pay for federal reimbursement—would phase down to 3.5% by 2032, with states losing more money for Medicaid. Leighton Ku, a health policy and management professor at George Washington University, told Forbes the Medicaid provisions—including work requirements for Medicaid expansion states—are expected to begin by 2027, with coverage losses 'really hitting home' in 2028 and 2029. Some states—like Alaska, which doesn't use provider taxes—would see little immediate change, where others that lean heavily on provider tax revenue could be forced to cut Medicaid services or find alternative sources of funding within the next year or two, according to Rosentiel and Ku. The most immediate impact on Medicaid would be changes to provider taxes, which would also change the way states work with health care providers to help finance their Medicaid programs, according to Ku. He told Forbes, 'Some of those changes are supposed to go into effect as soon as legislation is passed' and that 'We would begin to see some changes in the next year, in 2026.' Ku also said work requirements for Medicaid expansion states would follow suit in 2027. The bill would cut Affordable Care Act marketplaces, leaving nearly 12 million Americans without health insurance by 2034, according to estimates by the Congressional Budget Office. What Can States Do To Protect Medicaid Funding? Rosenstiel told Forbes states have always had 'a lot of flexibility when it comes to Medicaid,' and that wouldn't change under Trump's bill. 'If a state government wanted to reduce spending on roads and put that money toward Medicaid, they're free to do that. States can also, of course, choose to adopt Medicaid expansion or choose to not adopt Medicaid expansion,' Rosenstiel said. She said the majority of states will have to make changes to their provider taxes if the bill were enacted. 'Medicaid is so much money, and the states receive so much money from the federal government for Medicaid—I would be really surprised if state leaders weren't already at least starting to think about what they would want to do even if some changes don't go into effect until a year or two from now,' she said. House Passes Trump's Signature Spending Bill, Meeting July 4 Deadline (Forbes) Trump's Policy Megabill Cuts More Than $1 Trillion From Medicaid: Here's How (Forbes)

These 4 tax breaks in Trump's 'big beautiful' bill are only temporary
These 4 tax breaks in Trump's 'big beautiful' bill are only temporary

CNBC

time17 minutes ago

  • CNBC

These 4 tax breaks in Trump's 'big beautiful' bill are only temporary

President Donald Trump's landmark spending bill is ready to be signed into law after Republicans in both chambers of Congress eked out the necessary votes ahead of the GOP's self-imposed July 4 deadline to send the legislation to the president's desk. At its core, the bill permanently extends the tax cuts introduced in the 2017 Tax Cuts and Jobs Act while introducing a raft of new breaks. Some, such as an expanded child tax credit and an above-the-line deduction for charitable contributions, are permanent changes to the tax code. Others are slated to expire in 2028, at the end of Trump's term in office. That doesn't mean they necessarily will. After all, the cuts from the TCJA were slated to sunset this year, a reality that "lawmakers across the board and … across the aisle" were hoping to avoid entering budget negotiations, Erica York, vice president of federal tax policy at the Tax Foundation, recently told CNBC Make It. Still, as of now, four provisions — including some that Trump campaigned on — aren't slated to stick around for long. The bill creates an above-the-line deduction for tips earned by workers in occupations that traditionally receive tips. That means a bartender, for instance, would be able to deduct the total amount of their tips from their taxable income in a given year. The deduction phases out for individuals making more than $150,000 a year, or $300,000 a year for joint filers. Taxpayers can deduct a maximum of $25,000. The exemption also applies only to federal income tax. Tipped workers would still be subject to state and local income and payroll taxes. From 2025 through 2028, workers can deduct overtime pay from federal income tax. The deduction is capped at $12,500 for single filers and $25,000 for married couples filing jointly. The break begins to phase out for single filers making $150,000 or more ($300,000 for joint filers) and is unavailable to those making more than $275,000, or $550,000 for couples. The bill allows for a deduction of up to $10,000 for new auto loans. To qualify, your loan must have been taken out after Dec. 31, 2024 for a U.S.-assembled car, minivan, van, sport utility vehicle, pickup truck or motorcycle for personal use. The deduction starts to lose value for filers with incomes exceeding $100,000, or $200,000 for joint filers. The average driver paid $1,332 of annual loan interest charges on new cars bought in 2024, according to AAA. To qualify for the full $10,000 deduction, you'd have to take out a loan of roughly $112,000 — a description of only about 1% of new car loans, according to data from Cox Automotive. The bill creates a new type of savings account for children, with a one-time deposit of $1,000 from the federal government for U.S. citizens born between 2025 and 2028. Parents can make an annual after-tax contribution of up to $5,000 to these funds, to be invested in a diversified fund that tracks a U.S. stock index. If you're one of these kids, you won't be able to withdraw the money until you turn 18, and only half the money can be withdrawn between the ages of 18 and 25. Once you turn 31, you'll receive any remaining funds in your account as a distribution. Money that you use for qualifying expenses, including higher education expenses and first-time home purchases, is taxed at the long-term capital gains rate. Any other profits are treated as income, and, for beneficiaries under 30, subject to a 10% tax penalty.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store