European Shares Seen Up As Trade Optimism Prevails

(RTTNews) - European stocks may open on a firm note Friday following strong gains on Wall Street overnight.

As the July 9 deadline for potential new U.S. tariffs approaches, media reports suggest that there is some progress in U.S.-China trade talks.

U.S. Commerce Secretary Lutnick stated that a U.S.-China trade deal outlined in Geneva has been finalized and it could be signed during the next round of talks in London in early July.

The agreement specifically includes China resuming shipments of rare earth metals to the U.S. while the U.S. is prepared to lift previously imposed restrictions on exports to China, including ethane, microchip software, and jet engine components.

Separately, addressing the 'Big Beautiful Event' at the White House, President Donald Trump hinted at signing a very big trade deal with India soon.

Meanwhile, a ceasefire between Israel and Iran continue to hold, easing concerns over global supply chains.

In economic releases, economic confidence data from the euro area and flash inflation figures from France are due later in the day, headlining a busy day for the European economic news.

Across the Atlantic, trading later in the day may be impacted by reaction to a report on personal income and spending, which includes the Federal Reserve's preferred readings on consumer price inflation.

Asian markets were broadly higher this morning, with Japan leading regional gains. Gold fell about 1 percent and headed for a weekly loss as the ceasefire between Israel and Iran dented demand for havens.

The dollar hovered near its lowest level in 3-1/2 years against the euro and sterling. Oil traded higher but was on course for its worst week since March 2023 on easing concerns over Middle East supply risks.

U.S. stocks rose overnight as White House spokesperson Karoline Leavitt downplayed the importance of July's tariff deal deadlines.

In economic news, sales of durable goods came in well above expectations in May. Jobless claims came in below expectations last week, but continuing claims hit a 2.5-year high.

Revised data showed, real U.S. GDP fell at an annual rate of 0.5 percent in the first quarter of 2025, a downgrade from the previous estimate of a 0.2 percent decline and marking its worst quarterly performance since early 2023.

The tech-heavy Nasdaq Composite rallied 1 percent and the S&P 500 climbed 0.8 percent to end the day just shy of their record closing highs on Fed rate cut hopes. The narrower Dow advanced 0.9 percent.

European stocks closed mostly higher on Thursday after NATO leaders backed the increase in defense spending demanded by U.S. President Trump.

The pan European STOXX 600 ended flat with a positive bias. The German DAX rose 0.6 percent and the U.K.'s FTSE 100 edged up by 0.2 percent while France's CAC 40 finished marginally lower.