European shares fall; US Fed rate verdict in focus
The pan-European STOXX 600 was down 0.3%, as of 0813 GMT, while Germany's blue-chip index fell 0.5%.
German equities had jumped on Tuesday after the country's parliament approved plans for a massive spending surge to revive economic growth and scale up military spending.
European aerospace and defence index, the beneficiary of higher defence spending prospects, jumped 0.7% to a record high.
Long-term growth prospects from fiscal reforms also enabled Barclays to raise its year-end target for the STOXX 600 index.
Meanwhile, the Fed is widely expected to keep rates on hold later in the day. A similar move is also expected from the Bank of England on Thursday.
Basic resources led losses among sectors, falling 0.7%, followed by European banks, which lost 0.5% after closing at an all-time peak in the prior session.
In other stocks, Traton dropped 6.3% after its parent Volkswagen said it had sold a 2.2% stake in the truckmaker for 360 million euros ($393 million).
(Reporting by Nikhil Sharma; Editing by Rashmi Aich)
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Al Etihad
32 minutes ago
- Al Etihad
EU defends Trump trade deal facing backlash
28 July 2025 17:55 BRUSSELS, BELGIUM (AFP)The European Union on Monday vehemently defended its trade deal with President Donald Trump, with EU capitals and businesses sharply divided on an outcome some branded a "capitulation"."I'm 100 percent sure that this deal is better than a trade war with the United States," top EU trade negotiator Maros Sefcovic told Commission President Ursula von der Leyen clinched the framework accord with Trump Sunday after dashing to Scotland as the August 1 deadline loomed for steep levies that threatened to cripple Europe's exports are now set to face across-the-board tariffs of 15 percent -- higher than customs duties before Trump returned to the White House, but much lower than his threatened 30 27-nation bloc also promised its companies would purchase energy worth $750 billion from the United States and make $600 billion in additional investments -- although it was not clear how binding those pledges would be."This is clearly the best deal we could get under very difficult circumstances," Sefcovic details of the agreement — and crucially, which sectors could be exempt from the 15-per cent levy — will be announced in the coming days, although the EU states it has avoided steeper tariffs on key exports, including cars and the reaction from European capitals -- which gave von der Leyen the mandate to negotiate -- ranged from muted to outright Prime Minister Francois Bayrou said it was a "dark day" for Europe and said the accord was tantamount to "submission".Speaking for Europe's biggest economy, German Chancellor Friedrich Merz gave a warmer welcome to a deal he said had avoided "needless escalation".Industry groups in both countries made plain their disappointment however, with Germany's main auto sector body saying the 15-percent levy "burdens" carmakers while its VCI chemical trade association said the rates were "too high".Hungary's Prime Minister Viktor Orban attacked the deal in blunt terms, saying "Trump ate Ursula von der Leyen for breakfast". 'Not only about trade' "It looks a bit like a capitulation," said Alberto Rizzi of the European Council on Foreign Relations (ECFR)."The EU accepted a fairly unbalanced deal," he added, saying it delivered a "political victory for Trump".Von der Leyen had faced intense pressure from EU states to strike a deal quickly with the bloc's biggest partner and protect a $1.9-trillion trading Brussels' approach, Sefcovic warned that a no-deal scenario -- meaning a 30-percent tariff and the prospect of further escalation -- would have risked up to five million jobs in the months-long talks, Brussels prioritised stability and maintaining good relations with Washington over line of thinking has support: Italian Prime Minister Giorgia Meloni, a Trump ally, said the deal had avoided "potentially devastating" in Asia and Europe welcomed the certainty and rose following the announcement -- reflecting the 4.4 billion euros ($5.1 billion) worth of daily transatlantic goods and services trade that were at over the negotiations was the risk to other areas of cooperation -- like Ukraine -- if the EU descended into a trade war with its closest security partner."It's not only about the trade -- it's about security, it's about Ukraine," Sefcovic told reporters Funk Kirkegaard of the Peterson Institute for International Economics acknowledged it was "clearly an imbalanced deal" if judged purely on trade terms."But if you're trying to avoid worse national security outcomes, well then maybe the deal is not so bad," he said. Cautious approach The EU had sought to ramp up the pressure in the final stretch of talks, fearing a bad deal and higher levies, with countries approving a $109-billion package of counter-tariffs at the last states led by France were pushing for a more robust response, including the option to deploy the trade "bazooka" known as the anti-coercion the threat of retaliation was consistently framed by Brussels as a last resort should talks fail, and experts suggested the hardening stance may have come too late to make a real difference. "If the EU had played hardball at the very beginning, it probably could have got a better deal," ECFR's Rizzi told AFP.


Arabian Post
42 minutes ago
- Arabian Post
Octa market outlook: navigating one of the most eventful weeks of the year
KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 28 July 2025 – Forex traders are bracing for what could be one of the most pivotal trading weeks of the year. The calendar is packed with high-impact releases that could send shockwaves through the markets, potentially even temporarily halting trading altogether as global economies digest a barrage of critical data. From central bank decisions to blockbuster economic reports, this week is shaping up to be a rollercoaster for volatility, and traders need to be on high alert. Octa Broker is providing an in-depth overview of the week's key events and actionable insights to help traders navigate this high-stakes environment with confidence. A packed calendar: why this week stands out 'This is one of the busiest weeks I've seen in my career,' says Kar Yong, financial market analyst at Octa Broker. 'I've been in the markets for a long time, and I can genuinely say I've rarely witnessed such a major concentration of important events packed into a single week. Traders need to be exceptionally vigilant and prepared for rapid shifts.' Indeed, this will be a rather heavy week with a massive amount of event risk. It features the crucial U.S. Gross Domestic Product (GDP) report, decisions from three major G7 central banks, including the Federal Reserve (Fed), several key inflation reports, and, arguably the most volatility-inducing event in the Forex calendar, the Nonfarm Payroll (NFP) report. Adding to this potent mix, the International Monetary Fund (IMF) will release its World Economic Outlook on Tuesday, offering a global economic snapshot, while the looming 1 August deadline for U.S. reciprocal tariffs adds a geopolitical wildcard. Furthermore, some of the world's biggest companies will be reporting their quarterly earnings, particularly Microsoft, Apple, Meta, Amazon, Visa, Mastercard, Procter&Gamble, Hermes, HSBC, Exxon Mobil, and Chevron. ADVERTISEMENT While it's not unusual for some weeks to carry more weight than others, the upcoming slate of events is exceptional in both volume and significance and suggests a truly historic period for the financial markets. Here's a list of some of the major news releases to keep an eye on: Tuesday, 29 July World IMF World Economic Outlook United States Trade Balance United States JOLTS Job Openings United States CB Consumer Confidence United States Earnings: Visa United States Earnings: P&G Wednesday, 30 July Australia Inflation Rate (CPI) Eurozone GDP United States ADP Employment United States GDP Canada BoC Interest Rate Decision United States Fed interest Rate Decision United States Earnings: Microsoft United States Earnings: Meta United States Earnings: Hermes United States Earnings: HSBC Thursday, 31 July China NBS Manufacturing and Services PMI Japan BoJ Interest Rate Decision Germany Inflation Rate (CPI) Canada GDP United States PCE Price Index United States Earnings: Apple United States Earnings: Amazon United States Earnings: Mastercard Friday, 1 August World U.S. reciprocal tariffs to go into effect Eurozone Inflation Rate (CPI) United States NFP United States ISM Manufacturing PMI United States Earnings: Exxon Mobil United States Earnings: Chevron See also Jurassic World: The Experience Roars Into Bangkok - 8 August 2025 At Asiatique The Riverfront Destination As you can see, this is an extremely long list that features some heavyweights. In terms of the top scheduled events, we need to pick and choose what is going to carry the greatest influence. From a global macro perspective, the primary focus is still likely to remain firmly on the ongoing tariff developments. Kar Yong comments: 'Although the U.S. has recently inked new trade deals with several countries, notably the United Kingdom, Japan, and the Eurozone, the 1 August deadline still looms large for other nations. There remains considerable uncertainty surrounding potential trade resolutions with key economies such as Mexico, Canada, China, South Korea, Taiwan, Brazil, and Singapore, among others. Any headlines or official statements regarding these negotiations could trigger significant market reactions.' This tariff tension could weigh heavily on currency pairs like USD/BRL, USD/CNY, and USD/CAD, as markets react to both policy announcements and speculative headlines. Traders should monitor news wires closely, as any breakthroughs—or breakdowns—in trade talks could trigger sharp moves. Beyond tariffs, the week's economic calendar is brimming with catalysts: ADVERTISEMENT U.S. GDP and Nonfarm Payrolls. The Q2 GDP report on Wednesday will provide a snapshot of U.S. economic health, while Friday's NFP report could sway expectations for Fed policy. Strong data could bolster the USD, while weaker prints might fuel rate-cut speculation. The Q2 GDP report on Wednesday will provide a snapshot of U.S. economic health, while Friday's NFP report could sway expectations for Fed policy. Strong data could bolster the USD, while weaker prints might fuel rate-cut speculation. Central Bank Decisions. The Fed, BoC, and BoJ will announce their interest rate decisions, with markets expecting all three to hold steady. However, forward guidance will be critical, especially from the Fed, as traders parse comments on tariffs and inflation. Jerome Powell's press conference will be scrutinised for any shifts in monetary policy outlook, especially given the external pressures he is facing from the White House. The Fed, BoC, and BoJ will announce their interest rate decisions, with markets expecting all three to hold steady. However, forward guidance will be critical, especially from the Fed, as traders parse comments on tariffs and inflation. Jerome Powell's press conference will be scrutinised for any shifts in monetary policy outlook, especially given the external pressures he is facing from the White House. Inflation Reports. Australia, Germany, and the Eurozone will release Consumer Price Index (CPI) data, which could influence expectations for monetary policy in those regions. The U.S. Personal Consumption Expenditure (PCE) Price Index, the Fed's preferred inflation gauge, will also be closely watched. Here it will be important to see if record-high inflation expectations (due to rising tariffs) are feeding into the actual CPI figures. Australia, Germany, and the Eurozone will release Consumer Price Index (CPI) data, which could influence expectations for monetary policy in those regions. The U.S. Personal Consumption Expenditure (PCE) Price Index, the Fed's preferred inflation gauge, will also be closely watched. Here it will be important to see if record-high inflation expectations (due to rising tariffs) are feeding into the actual CPI figures. China PMI. The NBS Manufacturing and Services PMI will offer insights into China's economic recovery, a key driver for commodity currencies like AUD and NZD. How to trade this week: risk management is key Weeks like these demand a disciplined approach to trading. Volatility can create opportunities, but it also heightens the risk of significant losses. Here's how Forex traders can navigate this historic week: Stick to what you know. Focus on currency pairs you're familiar with. Understanding their historical behaviour and key levels will help you make informed decisions amid the chaos. Focus on currency pairs you're familiar with. Understanding their historical behaviour and key levels will help you make informed decisions amid the chaos. Set stop-losses religiously. Volatility spikes can lead to rapid price swings. Always use stop-loss orders to cap potential losses, and consider tightening them during major releases like NFP or central bank announcements. Volatility spikes can lead to rapid price swings. Always use stop-loss orders to cap potential losses, and consider tightening them during major releases like NFP or central bank announcements. Limit exposure. Avoid over-leveraging your positions. With so many events, a single unexpected headline could trigger a cascade of stop-outs. Keep position sizes modest to weather potential storms. Avoid over-leveraging your positions. With so many events, a single unexpected headline could trigger a cascade of stop-outs. Keep position sizes modest to weather potential storms. Stay informed, but don't chase noise. Follow reliable news sources and economic calendars, but avoid reacting impulsively to every headline. Use tools like Octa's trading platform, which boasts a proprietary feed of curated expert insights, to stay updated with real-time market data. Follow reliable news sources and economic calendars, but avoid reacting impulsively to every headline. Use tools like Octa's trading platform, which boasts a proprietary feed of curated expert insights, to stay updated with real-time market data. Diversify risk. Consider hedging strategies or trading less correlated pairs to spread risk. For example, if you're trading USD pairs, balance exposure with a non-USD pair like EUR/GBP. The most important takeaway? Stay focused and avoid distractions. The flood of data and headlines can be overwhelming, but successful traders stick to their strategies, trade pairs they understand, and use stop-losses to protect their capital. Emotional decisions in a week like this can lead to costly mistakes. This week is shaping up to be a historic one for Forex markets. With a dense lineup of economic releases, central bank decisions, and the ongoing tariff saga, traders face both opportunity and risk. By staying disciplined, managing risk effectively, and keeping a close eye on key events, you can navigate this volatile week with confidence. ___ Disclaimer: This press release does not contain or constitute investment advice or recommendations and does not consider your investment objectives, financial situation, or needs. Any actions taken based on this content are at your sole discretion and risk—Octa does not accept any liability for any resulting losses or consequences. Hashtag: #Octa The issuer is solely responsible for the content of this announcement. Octa Octa is an international CFD broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services used by clients from 180 countries who have opened more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools. The company is involved in a comprehensive network of charitable and humanitarian initiatives, including improving educational infrastructure and funding short-notice relief projects to support local communities. In Southeast Asia, Octa received the 'Best Trading Platform Malaysia 2024' and the 'Most Reliable Broker Asia 2023' awards from Brands and Business Magazine and International Global Forex Awards, respectively.


Zawya
2 hours ago
- Zawya
Sterling bounces off two-year low on euro, soft on dollar
The pound briefly hit a two-year low versus the euro on Monday, before rebounding, and dipped on the dollar, though its moves were largely a function of those elsewhere as investors digested the announcement of an EU-U.S. trade deal. The pound was last down 0.2% on the dollar at $1.34185, its lowest in a week, having struggled late last week because of soft British retail sales and business activity data. The pound was more volatile against the euro, which rose as high as 87.69 pence in early Asia trade, its highest since May 2023, as its gains last week were extended in a kneejerk bounce after the announcement of the trade deal. The common currency then reversed course, both broadly, and on the pound, as investors speculated that U.S. trade deals, in aggregate, would boost the dollar and so the euro's gains at its expense would cease. On the pound the euro was last down 0.5% at 86.99 pence. Investors are divided on sterling, partly due to disagreement on whether the Bank of England will step up the pace of its rate cuts later this year, something that would weigh on the currency. Inflation in Britain has proven sticky, meaning policymakers are loath to cut rates too quickly unless they are forced to, and recent data - soft but not terrible - has not yet definitively answered that question. "Another round of only modestly weaker data than expected were enough to push sterling to fresh lows versus the euro," said Barclays analysts in a note. "In our view, the pound's weakness is overdone and due a correction," they said, anticipating that the euro will fall to around 85 pence, which would be consistent with the gap between British and euro zone interest rates. Others expect that more BoE cuts, while the ECB now appears to be on hold, would hurt the pound against the euro. Nomura analysts see the euro rising to 89.75 pence. Little British economic data is due this week. The BoE meets next week, and markets are all but fully pricing in a 25 basis point rate cut, one of only two more they expect this year. (Editing by David Holmes)