European Shares Seen Up As Trade Optimism Prevails

(RTTNews) - European stocks may open on a positive note Thursday after reports emerged that the U.S. and EU are edging closer to a trade deal.

A possible deal would result in a broad 15 percent tariff on EU goods imported into the U.S., avoiding a harsher 30 percent levy slated to be implemented from August 1, two EU diplomats said.

German Chancellor Friedrich Merz has said that negotiations over a long-running trade dispute are making progress.

U.S. Secretary of the Treasury Scott Bessent told Bloomberg Television that the talks were "going better than they had been", and that progress was being made.

Commerce Secretary Howard Lutnick said Japan's pledge of billions in U.S. investments "could be" a model for the EU.

U.S. President Donald Trump said at an AI event in Washington that the new rates will not go below 15 percent and could go as high up to 50 percent.

On the earnings front, Google parent Alphabet beat earnings estimates and raised its capex guidance, citing increasing AI demand.

SK Hynix Inc., the largest supplier of artificial intelligence chips to Nvidia Corp., logged record profits in Q2, while electric car maker Tesla warned of potential "rough quarters" after missing earnings and revenue estimates.

Focus now shifts to the ECB rate decision later in the day, with the central bank expected to hold the deposit facility rate at 2.00 percent after cutting it by a quarter basis points each in every rate-setting session since September.

The announcement is due at 8.15 am ET. Following the governing council meeting in Frankfurt, ECB Chief Christine Lagarde holds press conference at 8.45 am ET.

Flash Purchasing Managers' survey results from the euro area and the U.K. and consumer sentiment data from Germany may also attract investor attention as the session progresses.

Asian stocks were mostly higher in cautious trade, with Japanese markets leading regional gains.

The U.S. dollar index slipped toward 97 to hover near a three-week low, while gold steadied below $3,400 per ounce after a previous session decline. Oil prices were up around half a percent due to positive sentiments surrounding U.S. trade talks.

U.S. stocks climbed overnight as President Trump announced trade deals with Japan and the Philippines, sparking optimism for similar agreements with other major economies ahead of the looming tariff deadline.

Investors shrugged off data that showed U.S existing home sales hit a nine-month low in June.

The tech-heavy Nasdaq Composite Nasdaq and the S&P 500 gained 0.6 percent and 0.8 percent, respectively to reach new record closing highs while the Dow jumped 1.1 percent.

European stocks rose on Wednesday to halt three sessions of losses on optimism that the U.S.-EU trade deal is imminent.

The pan European STOXX 600 rallied 1.1 percent, marking its biggest single-day gain since June 27.

The German DAX rose 0.8 percent, France's CAC 40 surged 1.4 percent and the U.K.'s FTSE 100 added 0.4 percent.