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.
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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