Global Economy
European Markets Open Slightly Higher Amid Earnings and Geopolitical Tensions
European equity markets started Friday with modest gains as investors digested the latest corporate earnings and kept an eye on ongoing Middle‑East volatility. The CAC 40 in Paris edged up 0.06%, the DAX in Frankfurt rose 0.44%, while the FTSE 100 in London slipped 0.02%. The ECB left its policy rate unchanged at 2.25% but hinted at a possible hike in September, and a dip in oil prices eased inflation worries.
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European indices in early trade
At 07:10 GMT the French CAC 40 was up 0.06 % at 8,304.20 points. Germany's DAX climbed 0.44 %, while Britain’s FTSE 100 slipped marginally by 0.02 %.
Broader European gauges
The EuroStoxx 50 advanced 0.34 %, the FTSEurofirst 300 rose 0.17 %, and the STOXX 600 added 0.14 %.
Key drivers
- Corporate earnings: Investors are reviewing a fresh round of quarterly results ahead of the release of European PMI data.
- Geopolitics: A 13th consecutive night of U.S. strikes in Iran keeps Middle‑East risk premiums elevated.
- ECB policy: The European Central Bank kept its reference rate steady at 2.25 % on Thursday, while signalling a possible rate increase in September.
- Oil market: Prices fell back below $100 per barrel as disruptions in the Bab el‑Mandeb and Strait of Hormuz eased.
- U.S. tariffs: Washington announced a 10 % duty on about 60 trading partners, including the EU, citing concerns over forced labour.
Notable equity moves
Argan surged 13 % to lead the SBF 120 after announcing a merger with WDP, which rose roughly 2 %. On the downside, Carrefour was the CAC 40’s red‑ink stock, falling 5.7 % after reporting a current operating result (ROC) that missed forecasts.
Overall, the market opened with a cautious optimism, balancing earnings‑driven lifts against geopolitical uncertainty and commodity‑price pressures.