European shares dip as mixed earnings, trade anxiety weigh
The pan-European STOXX 600 index (.STOXX), opens new tab was down 0.3% at 545.1 points, as of 0714 GMT.
European chemicals stocks (.SX4P), opens new tab led sector declines, falling 1.7%, as shares of Akzo Nobel (AKZO.AS), opens new tab dropped 4.2% after the Dulux paint maker lowered its core profit outlook for 2025.
Sartorius Stedim Biotech (STDM.PA), opens new tab slipped nearly 7%, the biggest percentage decliner in the STOXX 600, after the French lab supplies manufacturer reported its half-year results.
Conversely, Compass Group (CPG.L), opens new tab gained 4.5% after the British food catering firm agreed to buy European premium food services business Vermaat Groep for about 1.5 billion euros ($1.75 billion) including debt.
In trade, EU diplomats said the 27-nation bloc was considering a broader range of counter-measures against the United States, which could allow the EU to target U.S. services or curb access to public tenders in the absence of a deal.
Meanwhile, an ECB survey signalled on Monday that euro zone firms remained optimistic about their growth prospects but were also facing pressure on profits partly due to trade tensions.
Investors geared up for a week of corporate updates from Wall Street and European leaders, including results from the region's largest software maker SAP (SAPG.DE), opens new tab later in the day, to gauge the impact of trade turmoil on businesses.
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Reuters
15 minutes ago
- Reuters
Oil pares gains on possible US OK for Chevron to renew Venezuelan operations
HOUSTON, July 24 (Reuters) - Oil pared gains on Thursday afternoon following a Reuters report that U.S. President Donald Trump's administration may allow Chevron to resume operations in Venezuela. Brent crude futures were up 26 cents, or 0.38%, to $68.77 a barrel by 1:14 p.m. CDT (1814 GMT). U.S. West Texas Intermediate crude futures rose 44 cents, or 0.67%, to $65.69 per barrel. Earlier in the session, WTI had been up more than a dollar and Brent crude came near that level. "The news about Chevron being able to go back into Venezuela and get oil going again just took the knees out of the market," said John Kilduff, partner at Again Capital LLC. Kilduff said the market does not expect the Trump administration will open up Venezuela to other U.S. oil companies. "This is a unique one-off," he said. Oil was stronger on news Russia was planning to cut gasoline exports to all but a few allies and nations Mongolia, with which it has supply agreements. "Russia looking to cut off gasoline exports gave the market a boost," said Phil Flynn, senior analyst with Price Futures Group. "The market was looking for a reason to go higher." Early in the session, futures gained on the previous day's report of a U.S. crude inventory draw and on hopes for a trade deal between the U.S. and the European Union that would lower tariffs. "The U.S. crude inventory draw and the trade efforts are adding some support to prices," said Janiv Shah, an analyst at Rystad. On Wednesday, two European diplomats said the EU and the U.S. were moving toward a trade deal that could include a 15% U.S. baseline tariff on EU imports and possible exemptions. This could pave the way for another major trade agreement following the Japan deal. Also on Wednesday, U.S. Energy Information Administration data showed crude inventories fell last week by 3.2 million barrels to 419 million barrels, far exceeding analysts' expectations in a Reuters poll for a 1.6 million-barrel draw. Oil prices were also supported by a suspension of Azeri crude exports from the Turkish port of Ceyhan and a brief halt to loadings at Russia's main Black Sea ports which has since been resolved. BP (BP.L), opens new tab said organic chlorides were detected in some of the oil tanks in the terminal at Ceyhan, adding that oil loading continued from some of the tanks with chloride levels assessed to be within normal specifications, while export activities via the BTC pipeline also continued. Traders will watch for further news on loadings from Ceyhan and Novorossiysk, which together make up around 2.5% of global oil supply at 2.5 million barrels per day, according to Reuters calculations based on loading data from the region. Russia and Ukraine held peace talks in Istanbul on Wednesday, discussing further prisoner swaps, though the two sides remain far apart on ceasefire terms and a possible meeting of their leaders. "Next to watch would be the demand indicators as we are in the peak season and any upside or downside would impact refining margins," Rystad's Shah added.
Glasgow Times
32 minutes ago
- Glasgow Times
ECB leaves interest rates unchanged as it assesses impact of Trump tariffs
The bank's governing council announced on Thursday at its headquarters in Frankfurt that it would leave its benchmark deposit rate at 2%. 'The economy has so far proven resilient overall in a challenging global environment,' said bank president Christine Lagarde at her post-decision news conference. 'At the same time, the environment remains exceptionally uncertain, especially because of trade disputes.' The ECB has already cut rates eight times since June of last year and Ms Lagarde said after the last policy meeting on June 5 that the central bank is 'getting to the end of a monetary policy cycle'. US President Donald Trump sent the EU a letter informing officials of a potential 30% tariff (Julia Demaree Nikhinson/AP) The monetary authority for the 20 countries that use the euro currency has been lowering rates to support growth after raising them in 2022-2023 to snuff out inflation caused by Russia's invasion of Ukraine and the rebound after the pandemic. With the benchmark rate now at 2%, down from a record high of 4%, analysts think there could be one more rate cut coming, but only in September. The reason, say analysts: The ECB's policymakers simply do not know the outcome of talks between the EU's executive commission and the Trump administration. Mr Trump first set a 20% tariff for EU goods, then threatened 50% after expressing displeasure at the pace of talks, then sent the EU a letter informing officials of a potential 30% tariff. EU officials earlier held out hope of winning at least the 10% baseline that applies to almost all trade partners, and analysts think the actual rate may be lower than Mr Trump's tariff threats. The talks are up against an August 1 deadline, but earlier deadlines have slipped as the sides kept talking. With signs of economic activity holding up reasonably well, the ECB can afford to wait and see what the outcome of trade negotiations will be. Higher tariffs, or import taxes, on European goods would mean sellers would have to either increase prices for US consumers – risking loss of market share – or swallow the added cost in terms of lower profits. In either case, higher tariffs would hurt export earnings for European firms and slow the economy, which would strengthen the case for another rate cut in September. The ECB's rate cuts have helped support economic activity by lowering the cost of credit for consumers and businesses to purchase goods. Higher rates have the opposite effect and are used to cool off inflation by reducing demand for goods. Growth in the eurozone was relatively strong at 0.6% in the first quarter – though that was partly thanks to rushed shipments of goods trying to beat the tariffs. Inflation has fallen from double digits in late 2022 to 2% in June, in line with the ECB's target. A stronger euro, which lowers the price of imports, and softer global prices for oil have helped keep inflation moderate. The stronger euro, up 13% this year at 1.17 dollars, has attracted attention as a potential damper on growth and ECB vice president Luis de Guindos said any rapid moves over 1.20 dollars could be 'much more complicated'. But the ECB typically does not target the exchange rate, and the euro's rise is considered to be less the result of Europe's strength and more the result of a weaker dollar weighed down by investor uncertainty about the future path of inflation, growth and government debt in the US.
BBC News
an hour ago
- BBC News
Trade deal on US tariffs within reach, says EU, as 1 August deadline nears
The European Union has said it believes a deal on trade tariffs with the US is "within reach", ahead of a 1 August deadline when President Donald Trump has threatened to impose a sweeping 30% levy on EU were raised after EU diplomats suggested the US had proposed a broad 15% tariff on most European imports.A European Commission spokesman refused to speculate on the latest talks on Thursday, but said EU negotiators were working "might and main" to deliver a deal for Europe's consumers and House spokesman Kush Desai said earlier that any talk about deals should be seen as "speculation" unless it was confirmed by the president. Trump said on Wednesday that his condition for withdrawing the threatened 30% levy on EU imports was "if they agree to open up the [European] Union to American businesses".US Treasury Secretary Scott Bessent suggested good progress with the EU was being European Central Bank left interest rates unchanged at 2% on Thursday, after a series of rate cuts in recent months, and ECB President Christine Lagarde said "the sooner this trade uncertainty is resolved... the less uncertainty we'll have to deal with". The chief executive of French luxury group LVMH, Bernard Arnault, said an accord similar to the one Japan reached with the US had to be reached amicably."We cannot afford to fall out with the United States and engage in a trade war with our companies' main market," he told Le Figaro newspaper in EU had initially hoped for a 10% baseline in US import tariffs, along the lines of a deal the US agreed with the UK, until Trump sent a letter threatening a 30% now, the EU has refrained from imposing counter-tariffs on the US, even though European companies have faced an extra 10% levy on exports, on top of an average duty of 4.8% they faced before the Trump if President Trump does not approve an EU accord, then member states have agreed to hit back with a list of countermeasures on US goods worth a total of €93bn (£81bn; $109bn) that would kick in days after the US tariffs."These countermeasures will automatically click into force on 7 August should a negotiated outcome not happen before then," European Commission spokesman Olof Gill told reporters."Right now the EU is focused on finding a negotiated outcome with the US," he said, while stressing that a "twin-tracks" approach meant that it was prepared to react without a deal. The €93bn in countermeasures are made up of an initial list of €21bn - drawn up in retaliation for 25% US tariffs imposed last March on imports of European steel and aluminium - and a new list of € first tariffs, thought to target imports such as Harley-Davidson motorcycles, poultry and jeans, have been repeatedly suspended in recent months in the hope of reaching a new €72bn in countermeasures are said to include proposed tariffs on bourbon whiskey, chemicals, cars, aircraft and aircraft option in the EU's armoury, described as its nuclear option or trade "bazooka", is to impose restrictions on America's powerful service sector as well as intellectual property anti-coercion instrument (ACI), to give its formal name, was drawn up two years ago to act as a powerful deterrent when a non-EU country resorted to unfair coercion to affect European trade or investment. At the moment there is little support across the EU for this level of retaliation to be on the table, but earlier this week French Industry Minister Marc Ferracci suggested Europe should adopt a firmer approach and deploy new that 30% tariffs would have dramatic consequences for French industry and place some sectors in "mortal danger", Ferracci said various responses would need to be deployed in the event of a failure to reach a deal by 1 August.
