European Stocks Rise on Trade Optimism with Washington

European Stocks Rise on Trade Optimism with Washington, Gold Falls as Powell Fears Ease

European stocks rose on Thursday supported by trade optimism, while gold declined as concerns over Powell’s future subsided.

 

Contents

 

 

 

European Stocks

European equities opened higher on Thursday, buoyed by growing optimism in the markets regarding a potential trade agreement between the European Union and the United States before August 1st—an outcome that could help the region avoid a new wave of trade tensions.
 The Stoxx Europe 600 index rose by 0.6% to reach 545 points, although gains were somewhat limited by declines in the utilities and defense sectors.
 Germany’s DAX led the gains with a 0.95% increase to 24,238 points, followed by France’s CAC 40 which also rose by 0.95% to 7,794 points, while the UK’s FTSE 100 climbed 0.3% to reach 8,953 points.
 These movements came after U.S. President Donald Trump stated that the U.S. was “very close” to reaching a trade deal with India, and potentially with Europe as well, according to Reuters. His remarks coincided with a visit by EU Trade Commissioner Maroš Šefčovič to Washington to discuss tariff-related issues.

 

 

 

Gold

Conversely, gold prices declined during Thursday trading after Trump’s statements about Federal Reserve Chair Jerome Powell helped ease some of the uncertainty in the markets. Trump confirmed he had no plans to dismiss Powell, despite renewing his criticism over Powell’s reluctance to cut interest rates.
 August gold futures dropped by 0.7%, or $23.90, to $3,335.20 per ounce, while spot gold fell by 0.55% to $3,329.55 per ounce.
 At the same time, the U.S. dollar index rose by 0.3% to 98.69, increasing pressure on gold and other precious metals.
 Meanwhile, September silver futures held steady at $38.10 per ounce, spot platinum fell by 0.55% to $1,414.25, and palladium declined by 1.55% to $1,217.74.

 

 

 

European Stocks Rise on Trade Optimism with Washington

Gold and Oil Prices Fluctuate Amid Trump’s Remarks

Gold and Oil Prices Fluctuate Amid Trump’s Remarks
 Gold and oil prices experienced sharp volatility due to U.S. political statements and concerns about global inventories.

 

Contents

 

 

 

 

Gold

Slight Decline After Easing Powell Concerns

Gold prices dipped slightly after a volatile session, settling near $3,330 per ounce following a 0.7% gain in the previous session. This move came amid speculation that Federal Reserve Chairman Jerome Powell could be dismissed by President Donald Trump. However, Trump later stated that he had “no plans to take any action” against Powell, temporarily easing market tensions.
 Although the threat of Powell’s dismissal has subsided, concerns over potential political interference remain, especially regarding the independence of the Federal Reserve. This has further reinforced gold’s role as a safe-haven asset, particularly as it has risen by nearly 30% since the start of the year, supported by geopolitical tensions, ETF inflows, and central bank purchases.

 

 

Oil

Cautious Rise as Markets Await Inventory Data

Oil prices edged higher after three consecutive days of losses, with Brent crude climbing toward $69 per barrel and West Texas Intermediate (WTI) stabilizing near $67. These gains came as traders awaited U.S. inventory data, which showed a drop in crude stocks but a rise in distillates.
 Meanwhile, Trump escalated his rhetoric on trade tariffs, stating he may impose duties of up to 15% on over 150 countries. While this could potentially weigh on global demand, the market is temporarily supported by low diesel inventories, especially in Europe and the U.S.
 Ongoing tensions in the Middle East, including drone attacks on oil facilities in Iraq’s Kurdistan region, are also supporting short-term prices. However, the return of OPEC+ supplies and weaker summer demand could put downward pressure on prices later this year.

 

 

Gold and Oil Prices Fluctuate Amid Trump’s Remarks

US Senate Passes Budget Cuts Amid Deep Division

US Senate Passes Budget Cuts Amid Deep Division
The U.S. Senate approved a $9.4 billion federal spending cut bill amid sharp partisan division.

 

Contents

 

 

 

United States

U.S. Senate Passes $9.4 Billion “Cuts” Bill Amid Partisan Division
 In the early hours of Thursday morning, the U.S. Senate voted to pass the “Cuts” bill backed by President Donald Trump,
which proposes a $9.4 billion reduction in federal spending.
 The bill passed by a narrow margin of 51 votes to 48,
with two Republican senators voting against it—highlighting a clear partisan split over its implications and potential impact.
 This legislation is considered a limited component of a broader cost-cutting plan introduced by the Department of Government Efficiency (DOGE), a body established by Trump upon assuming office last January, aimed at enhancing the effectiveness of government spending.
 Estimates suggest the bill could lead to significant reductions in programs such as foreign aid and public broadcasting services.
 Previous reports had indicated that Trump preferred passing the bill in its original form without amendments, but the Senate introduced several changes, meaning the bill must now return to the House of Representatives for a final vote before full approval.

 

 

United Kingdom

UK Job Market Shows Signs of Weakness in June as Unemployment Rises to 4.7%
 Official data released Thursday morning by the UK’s Office for National Statistics revealed a decline in labor market conditions in June, with a noticeable increase in unemployment and new jobless claims—indicating a possible slowdown in economic momentum.
 New jobless claims rose by 25.9K in June, significantly exceeding market expectations of a 17.9K increase. Moreover,
the May figure was revised downward to 15.3K from the previously announced 33.1K.
 Regarding the unemployment rate, data showed an increase to 4.7% in the three months ending in May,
up from 4.6% in the previous period, and above market expectations of a steady 4.6%.
 Meanwhile, average wages excluding bonuses grew 5% year-on-year during the same period,
aligning closely with expectations of 4.9%, but marking a slight slowdown from 5.2% in the prior period.

 

 

Australia

Australia’s Unemployment Hits 4-Year High, Fueling Rate Cut Expectations
 Australia’s unemployment rate saw an unexpected increase in June, reaching its highest level in nearly four years and boosting expectations that the Reserve Bank of Australia may lower interest rates in its upcoming meeting.
 According to data from the Australian Bureau of Statistics released Thursday,
unemployment rose to 4.3%—the highest since November 2021—compared to market expectations of it holding steady at 4.1%.
 On the employment front, the data showed a modest gain of just 2,000 jobs in June,
entirely driven by part-time employment, falling short of forecasts for a 20,000 job increase.

 

 

 

 

US Senate Passes Budget Cuts Amid Deep Division

Cryptocurrencies Surge on Institutional Demand and Trump’s Support

Cryptocurrencies Surge on Institutional Demand and Trump’s Support Bitcoin Tops $119K

Cryptocurrencies saw a remarkable rise, fueled by institutional demand and growing political support — led by former President Donald Trump’s increasing endorsement.

 

 

Content:

Political Support
Institutional Momentum

 

 

Political Support

Cryptocurrency prices climbed on Wednesday, driven by rising demand from both individual and institutional investors,
amid growing political support for digital assets from U.S. President Donald Trump.
 Bitcoin — the largest cryptocurrency by market value — rose by 2% to reach $119,004.82 as of 5:12 PM Mecca time,
accounting for approximately 62.9% of the total crypto market capitalization.
 Ethereum also jumped by 3.75% to trade at $3,170.03, while Ripple increased by 3.1% to reach $2.955.
 The total cryptocurrency market capitalization reached around $3.76 trillion,
while total 24-hour trading volume stood at $187.7 billion, according to data from CoinMarketCap.

 

 

 

Institutional Momentum

This positive momentum was further supported by Standard Chartered’s announcement on Tuesday
that it would allow its institutional clients to trade Bitcoin and Ethereum through its UK branch.
This move makes it the first systemically important global bank to offer crypto trading services, according to Reuters.
 Meanwhile, El Salvador’s “Bitcoin Office” revealed that the country purchased seven additional Bitcoin units last week,
raising its total holdings to 6,239.18 BTC — valued at over $742 million — as part of its continued digital asset investment strategy.

 

 

Cryptocurrencies Surge on Institutional Demand and Trump’s Support

Energy and Currency Markets Fluctuate Between Output and Policies

Energy and Currency Markets Fluctuate Between Output and Policies

Russia saw a decline in energy production, while inflation data and trade policies influenced movements in the dollar and the British pound.

 

 

Content:

Oil
Dollar

 

 

 

 

 

Oil

Russia’s Oil and Gas Production Declines in 2025 Amid OPEC+ Commitment

The Russian Ministry of Energy announced a 3.5% decrease in the country’s oil production between January and May 2025,
reaching 211 million tons, equivalent to approximately 10.24 million barrels per day, compared to the same period last year.
 This decline came in the context of Moscow’s adherence to the production cut agreement led by the OPEC+ alliance,
according to Energy Minister Sergey Tsivilev during his address to parliament.
 The ministry’s report showed that Russia produced 516 million tons of oil in 2024,
marking a 2.7% drop from 2023, reflecting the ongoing commitment to reducing supply under the OPEC+ pact to support global market stability.
 Natural gas production also declined by 3% in the first five months of this year, totaling 290 billion cubic meters,
while coal production recorded a marginal increase of 0.1%, reaching 187 million tons, according to the minister’s presentation.

 

 

 

Dollar

Dollar Slips Amid Tariff Concerns; Inflation Data Lifts Sterling

The U.S. dollar index fell on Wednesday, as investors monitored developments in trade negotiations between Washington and its international partners,
amid renewed concerns over the potential impact of tariffs on price levels.
 The dollar index, which tracks the U.S. currency against a basket of six major currencies, slipped 0.1% to 97.52 points.
 In contrast, the euro rose by 0.15% to $1.1619, while the dollar weakened against the Japanese yen by 0.13% to 148.66 yen.
 The British pound gained 0.15% to reach $1.3399, supported by unexpected data showing a rise in the UK inflation rate in June to 3.6% year-on-year,
up from 3.4% in May — boosting expectations that the Bank of England will maintain its tight monetary policies for a longer period.

 

 

 

Energy and Currency Markets Fluctuate Between Output and Policies

What Is the Difference Between CFDs and Futures?

What Is the Difference Between CFDs and Futures?
 With the wide range of trading tools in financial markets,
new investors may struggle to differentiate between Contracts for Difference (CFDs) and Futures.
Both are used to speculate on future price movements, but they differ significantly in structure, purpose, and risk.

 

Topic

CFDs

Futures

Summary Table

 

 

 

 

 

CFDs

What Are CFDs?
 CFDs are agreements between a trader and a broker to exchange the difference in an asset’s price between the opening and closing of a trade,
without owning the asset itself.
For example, you can trade oil or gold through CFDs without owning a single barrel of oil or gram of gold.

 

Advantages of CFDs:

  • Do not require ownership of the underlying asset 
  • Allow the use of leverage 
  • Flexibility to trade both upward and downward movements 
  • Suitable for short-term trading 

Disadvantages:

  • High risk due to leverage 
  • Often subject to spreads or commissions 

 

Futures

What Are Futures?
 Futures are legally binding agreements to buy or sell a specific asset at a set price on a future date.
They are commonly used in commodity markets like wheat and oil, as well as indices and currencies.

 

Advantages of Futures:

  • High transparency and exchange regulation 
  • Used for hedging price volatility 
  • High liquidity in certain markets 

Disadvantages:

  • Require more capital than CFDs 
  • Commitment to specific expiry dates 
  • More complex for beginners 

 

 

 

 

Summary Table

Element CFDs Futures
Ownership Do not own the asset Legal obligation to buy/sell
Contract Duration Often open-ended Fixed expiry dates
Leverage Trading Yes Yes (under different terms)
Regulation OTC brokers Regulated exchanges
Best Use Case Short-term speculation Institutional hedging/investing

 

Which Is Better for the Individual Investor?

The best choice between CFDs and Futures depends on the investor’s experience, goals, and available capital.
For individual investors, CFDs are generally more suitable due to easier access through online platforms,
the ability to start with smaller amounts, and flexibility in both buying and selling.
 On the other hand, while Futures offer advantages to professional investors,
they require advanced knowledge and greater commitment in terms of capital and contract settlement dates.

So, if you’re a beginner or seeking flexible short-term trades, CFDs may be the better option.
But if you’re a seasoned trader aiming for long-term hedging in organized markets, Futures may suit you more.

 

 

 

What Is the Difference Between CFDs and Futures?

Massive AI Investments Boost Germany

Massive AI Investments Boost Germany

As economic confidence improves, Germany is moving strongly toward developing its artificial intelligence infrastructure,
backed by multi-billion-dollar investments from Oracle.

 

Contents

 

 

Germany

German Economic Confidence Hits Highest Level Since 2021; Eurozone Optimism Lags Behind

On Tuesday, Germany’s ZEW Institute released its July economic sentiment data for both Germany and the Eurozone, showing mixed performance compared to market expectations.

In Germany, the ZEW Economic Sentiment Index rose to 52.7 points, marking its highest level since July 2021 and surpassing forecasts of 50.8 points. This also reflects a solid improvement from June’s reading of 47.5.

The data indicates growing optimism among investors and analysts about the outlook of Europe’s largest economy, suggesting increasing expectations of a recovery in the coming months.

In contrast, the ZEW index for Eurozone sentiment edged slightly higher to 36.1 points in July, missing expectations of a rise to 37.8 points. Still, this reading is an improvement over June’s 35.3 points.

The figures highlight a notable gap: while confidence in Germany has improved significantly, recovery in Eurozone-wide investor sentiment remains slower, amid persistent economic challenges in several member states.

 

 

 

Artificial Intelligence

Oracle to Invest $3 Billion in AI Infrastructure in Germany and the Netherlands

On Tuesday, tech giant Oracle announced a plan to invest $3 billion over the next five years to strengthen its cloud computing and artificial intelligence infrastructure in Europe, focusing specifically on Germany and the Netherlands.

Of the total, approximately $2 billion will be allocated to Germany, while $1 billion will go to the Netherlands, according to Reuters. The move aims to meet growing demand from European businesses and institutions for AI solutions and advanced cloud services.

This investment will enhance Oracle’s cloud data center capabilities in Frankfurt and Amsterdam, giving the company a stronger foothold in a European market that is rapidly accelerating its digital transformation and adoption of AI technologies.

 

 

 

Trump

Trump Renews Attack on Fed Chair, Urges Rate Cut Below 1%

On Monday, U.S. President Donald Trump renewed his public criticism of Federal Reserve Chair Jerome Powell, calling for a significant interest rate cut to support the economy.

Speaking to reporters, Trump said he believes interest rates should be cut to 1% or even lower, expressing dissatisfaction with the Fed’s current monetary policy under Powell’s leadership.

Previously, Trump intensified his attacks by saying Powell’s resignation would be “great for the U.S.” and labeling his performance as “very bad for the country.”

In response, Beth Hammack, President of the Cleveland Federal Reserve, pushed back on the calls, affirming that the U.S. economy continues to show strong resilience and that there is no urgent need to lower rates.

“Unless we see clear weakness in the labor market,” she said, “there’s no justification to adjust monetary policy in that direction.”

 

 

 

Massive AI Investments Boost Germany

Bitcoin Drops 3.2% After Record Surge as Investors Cash Out

Bitcoin Drops 3.2% After Record Surge as Investors Cash Out

After surpassing the $123,000 mark, Bitcoin faces a sharp correction driven by profit-taking.

 

 

Contents

 

 

 

Profits

Record Gains Trigger Investor Selling

Bitcoin fell 3.2% to $117,386 as of midday Tuesday in Singapore, marking its largest decline in over three weeks. The drop came after the cryptocurrency surged past $123,000 on Monday, fueled by optimism surrounding a potential new U.S. regulation on digital assets—legislation that could support President Donald Trump’s pro-crypto agenda.

The recent surge was also bolstered by improving risk appetite across markets, with U.S. stocks nearing record highs amid easing concerns about the economic impact of Trump’s renewed trade war.

 

 

Support

Natural Correction and Key Technical Level at $114,000

The decline extended to other cryptocurrencies as well. Ethereum dropped 1.4%, while Solana and XRP each lost nearly 2%. Analysts described the pullback as a normal technical correction following a sharp rally.

Stefan von Haenisch of BitGo noted that the market is experiencing a “typical retracement,” suggesting that the $114,000 level serves as a key support zone for Bitcoin—one that previously triggered significant short-covering during earlier price rallies.

 

 

Outlook

Cautious Optimism Amid Market Volatility

Despite the recent decline, many analysts remain bullish on Bitcoin’s long-term prospects, especially given the rise in institutional interest and the potential for clearer digital asset regulations.
 However, the market continues to face short-term volatility and sharp corrections, with heightened sensitivity to political and regulatory developments.

In light of this, investors are advised to closely monitor key support and resistance levels, and to approach the market with a high degree of caution in the near term.

 

 

 

Bitcoin Drops 3.2% After Record Surge as Investors Cash Out

Gold Prices Rise While Oil Retreats Amid Mixed U.S. Signals

Gold Prices Rise While Oil Retreats Amid Mixed U.S. Signals on Trade and Russia

Gold prices rose by 0.5% to $3,360.86 per ounce, recovering losses from the previous session,
as markets closely monitor conflicting U.S. statements regarding the progress of trade negotiations.

 

 

Contents

 

 

 

Gold

Recovers Losses Amid Uncertainty in U.S. Trade Policy

Gold prices increased by 0.5% to $3,360.86 per ounce, erasing the previous session’s decline.
The move reflects heightened investor caution over conflicting signals from the U.S. on trade talks,
which has boosted the metal’s appeal as a safe-haven asset during geopolitical and economic uncertainty.

Despite hitting a record high above $3,500 per ounce in April, gold prices have stalled over the past three months.
Investors remain cautious, awaiting greater clarity on U.S. trade policy—especially after President Donald Trump delivered mixed messages.
While expressing openness to further negotiations with the EU and other major economies,
he insisted that the announced tariff levels represent the “deal” for trade partners.

According to Fawad Razaqzada, a market analyst at City Index,
gold could test or even surpass its previous highs if trade tensions escalate before August.
He noted that the market is currently adopting a “wait-and-see” approach, with a cautious upward bias for gold.

Meanwhile, the Bloomberg Dollar Spot Index held steady after gaining 0.3% on Monday.
Silver remained flat after reaching a 14-year high earlier in the session, while palladium and platinum both posted gains.

 

 

Oil

Falls as U.S. Pressure on Russia Appears Tepid

Oil prices declined for a second straight session, with Brent crude trading below $69 per barrel,
following a 1.6% loss on Monday.
The downturn comes as traders weigh the effectiveness of President Trump’s latest strategy against Russia,
which included threats but no immediate action.

Trump had announced increased military support for Ukraine and threatened to impose 100% tariffs if hostilities were not resolved within 50 days.
U.S. officials added that the move amounts to indirect sanctions on countries continuing to buy Russian oil—specifically naming India and China.

Still, the lack of immediate enforcement has left markets skeptical.
“The fundamentals are still supportive in the near term,” said Warren Patterson, Head of Commodities Strategy at ING Group.
However, he expects a significant downturn in prices starting in Q4, as bearish pressures begin to mount.

 

 

 

China

Ramps Up Refining Output as Goldman Sachs Adjusts Forecasts

In a notable development, official Chinese data showed refinery throughput exceeded 15.2 million barrels per day in June,
the highest since September 2023—indicating improved domestic demand.

At the same time, Goldman Sachs raised its H2 Brent forecast by $5 to $66 per barrel,
citing an unexpected drop in OECD inventories, particularly in the U.S.
However, the bank maintained its long-term forecast at $56 per barrel by 2026,
signaling expectations of a structural price decline over the coming years.

 

 

 

Gold Prices Rise While Oil Retreats Amid Mixed U.S. Signals on Trade and Russia

 New Loans in China Strongly Exceed Expectations

 New Loans in China Strongly Exceed Expectations
 Chinese banks recorded the highest lending pace in 3 months, reflecting a rebound in economic confidence.

 

Content:

China

England

Europe

 

 

China

New loans in China rose at the fastest pace in three months, far exceeding expectations.
Chinese banks saw a significant surge in yuan-denominated lending during June,
with data released Monday by the People’s Bank of China (PBoC) confirming the jump.

The data showed that new loans totaled 2.24 trillion yuan in June,
beating market expectations of 1.96 trillion and significantly higher than May’s figure of 620 billion yuan.

This increase is a positive sign of growing confidence among consumers and businesses,
as there is a direct relationship between borrowing and spending.
As economic outlook improves, the appetite for credit rises, boosting economic activity and growth.

Meanwhile, the PBoC reported that the broad money supply (M2) increased by 8.3% in June compared to the same period last year,
surpassing expectations of 8.2% and improving from 7.9% in May.
This suggests a slight recovery in monetary liquidity within the Chinese economy.

 

 

England

Bank of England Governor Hints at Faster Rate Cuts if Labor Market Slows

Bank of England Governor Andrew Bailey signaled a possible acceleration in rate cuts if the UK labor market continues to weaken.

In comments to The Times on Sunday, Bailey said there are growing signs that British companies are scaling back hiring plans,
reflecting an economic slowdown that could help ease inflationary pressures.

“I strongly believe the overall direction of inflation is downward,” Bailey said,
adding that a faster-than-expected slowdown could prompt the Bank to adjust its monetary policy more swiftly.

His remarks come as UK inflation remains high at 3.4%,
with expectations that June’s reading—due Wednesday—will remain unchanged,
putting additional pressure on policymakers to decide the next move.

 

 

Europe

New Political Agreement Between EU and Indonesia Paves Way for Comprehensive Free Trade Deal

The European Union and Indonesia have reached a new political agreement aimed at accelerating negotiations for a comprehensive free trade deal,
in what Brussels described as a new chapter in economic ties with one of Southeast Asia’s largest economies.

In a joint press conference with Indonesian President Prabowo Subianto, European Commission President Ursula von der Leyen stated,
“This agreement comes at the perfect time, revealing untapped potential in our trade relationship and opening new markets for both sides.”

The deal is expected to remove many tariff and non-tariff barriers, facilitate the flow of goods and services,
and create wider opportunities for European companies in the Indonesian market—especially in renewable energy, technology, and infrastructure.

Indonesia hopes the agreement will attract more European investment and boost its agricultural and industrial exports,
as part of a broader strategy to diversify trade partnerships and reduce dependency on the Chinese market.

According to EU Commission data, trade volume between the EU and Indonesia surpassed €25 billion in 2022 and is expected to grow significantly in the coming years under the new agreement.

 

 

 

 New Loans in China Strongly Exceed Expectations