European Markets Set for Boost as Global Sentiment Improves

European markets are poised for a higher open as global market sentiment improves, driven by diminishing concerns over the U.S.-China trade war and President Trump’s reassurances regarding Federal Reserve Chair Jerome Powell’s position. The anticipated opening for the FTSE 100 index is 8,418, up by 86 points, with Germany’s DAX set to rise by 457 points to 21,739, France’s CAC expected to increase by 84 points to 7,402, and Italy’s FTSE MIB projected to gain 446 points, reaching 35,906.

On the corporate side, SAP reported significant growth with a 60% year-on-year increase in operating profit, reaching 2.3 billion euros, while revenue rose 12% to 9 billion euros, and EPS jumped 79% to 1.44 euros. In contrast, Volvo experienced a 7% decline in net sales, attributing this contraction to uncertainties surrounding U.S. tariffs, with operating income reported at SEK 13.3 billion and a margin of 10.9%.

Gold prices saw a decline from record highs, trading at $3,362.85 per ounce, influenced by Trump’s positive remarks regarding trade relations and Powell’s status. Trump’s assurance of not dismissing Powell was well-received, leading to a surge in U.S. stock futures, with Dow futures rising 500 points. His term as Fed chair will extend until May 2026. Investors are also focused on earnings reports from NatWest and Heathrow, along with upcoming purchasing managers’ index data for the euro zone’s services and manufacturing sectors.

Source: CNBC