MARKET WRAPS

European stocks were set to end the trading week on a positive note Friday, as sentiment seemed to look past new U.S. tariffs

and shrug off the recent surge in oil prices.

As Trump loses patience

with the war against Iran and the Houthis in Yemen open a new front

in the conflict, the U.S. is implementing new levies between 10% and 12.5% on key trade allies. The move replaces the provisional 10% universal tariff which expires Friday.

After topping $100 a barrel in the prior session, Brent crude fell, but was heading for a 12% weekly gain .

B

anks and software stocks gained

after the opening bell, lifting indexes around the region.

Approaching midday the FTSE 100 the CAC 40 and the DAX were gaining. The pan-European Stoxx 600 index was up.

Unless oil prices fall significantly

over the coming weeks, a rate hike by the European Central Bank in September is highly likely, Pictet Wealth Management said, adding that market pricing of further hikes might prove excessive.

Elsewhere, consumer sentiment in Germany weakened

somewhat. The country's consumer-climate index fell to minus 29.6 in its forecast for August, from minus 29.3 in July. In the U.K., consumer confidence rose

amidst optimism with Andy Burnham set to take the helm as the country's prime minister.

Economic Insight

Incoming data point to a Federal Reserve staying on hold

at its July meeting, and also to a likelihood of keeping rates unchanged for the remainder of the year, Morgan Stanley said.

Meanwhile, the re-escalation of the Middle East conflict could end up causing a broader

supply-chain crisis. ANZ said that the oil market has avoided a more disorderly price response because of several buffers, but the latest strikes raise concerns about whether these buffers, including important workarounds, can effectively keep the world supplied with oil.

U.S. Markets:

Stock futures pointed to a positive open after tech stocks were hurt in the prior session by fresh worries about artificial intelligence spending.

Forex:

The euro

rose against the dollar after the July eurozone purchasing managers' survey exceeded expectations.

MUFG Bank said the EU's single currency, along with sterling, could fall

if energy prices continue rising markedly.

Sterling

recovered slightly against the dollar but remained near a two-week low versus the euro. The pound was little moved after data showed U.K. retail sales unexpectedly rose in June. The euro was flat against the pound.

The dollar

edged slightly lower against a basket of currencies but remained at elevated levels after reaching a three-week high on Thursday.

Bonds:

Eurozone government bonds

recovered slightly.

Eurozone government bond yield spreads remained under widening pressure

amid renewed geopolitical tensions, Societe Generale said.

Yields on gilts

declined slightly as oil prices stabilized and reversed Thursday's rise.

"The usual seasonal tightening is not at play as investors seem reluctant to carry long spread positions amid expectations of renewed issuance and heightened political uncertainty after the summer."

Treasury yields

edged lower but stayed near Thursday's peaks as Brent oil looked to stabilize for now, according to J.P. Morgan.

Energy:

Brent crude edged lower

in early trading after settling above $100 a barrel Thursday.

"The key question is at what price level pressure begins to build on the Trump administration to return to the negotiating table," ING said.

The oil market is increasingly focused on the resilience of physical crude flows

rather than whether the Strait of Hormuz reopens, Rystad Energy said

"The direction of prices will ultimately depend on three factors: whether crude flows into Asia can be maintained, whether refiners can adapt to a changing mix of crude grades and how geopolitical developments unfold."

Metals:

Gold was back below $4,100 as higher real yields and rate-hike bets weighed on the non-yielding metal.

EMEA HEADLINES

SAP Shares Jump After Strong Quarter Reassures Investors of Cloud Business Resilience

SAP shares climbed after the German business-software group logged strong revenue figures in the second quarter, reassuring investors that growth at its cloud business remains healthy despite fears of disruption from artificial intelligence.

The company behind the Concur travel and expense management platform said its current cloud backlog-a closely watched measure of sales that SAP expects over the coming year based on existing contracts-grew 26% at constant currencies, above expectations of around 24%.

Volkswagen Cuts Sales and Delivery Forecasts as Challenges Mount

Volkswagen cut its sales and car delivery forecasts for the year and reiterated that it must do more to counter mounting industry headwinds.

The German automaker on Friday said it now expects full-year sales to land somewhere between flat and a 3% decline, having previously guided for flat to 3% growth. It said the revision was mainly due to steep volume declines in China after the total market in the country slumped 20% in the first half of the year.

Argan, WDP to Create $14.8 Billion European Logistics Real Estate Group

French warehouse specialist Argan and Belgian peer WDP agreed to create a 13 billion euros ($14.79 billion) logistics real estate company through an all-share merger, marking the latest move toward consolidation in the European sector.

Under the terms of the deal, Argan shareholders will receive three newly issued WDP shares for each Argan share held. The French company intends to propose an exceptional preclosing distribution of 11 euros a share, the companies said.

Sanofi to Drop Eczema Drug Amid Review of Pipeline Under New CEO

Sanofi said it decided against seeking regulatory approval for a new eczema drug as the French pharmaceutical company reviews its pipeline following the appointment of a new chief executive.

The drugmaker said Friday that efficacy and safety data generated to date doesn't support further development of the drug, amlitelimab, in atopic dermatitis.

HSBC to Sell Singapore Insurance Business to Allianz for $2.1 Billion

HSBC Holdings has agreed to sell its Singapore life and health insurance business to Allianz for $2.1 billion, as the U.K.-based lender reshapes its portfolio to focus on core markets and businesses.

The sale is expected to generate a pretax gain of about $1.8 billion at the HSBC Group consolidated level, the bank said Friday.

Ubisoft Logs Fall in Bookings, but Flags Early Success of Assassin's Creed Remake

Ubisoft Entertainment posted lower net bookings for its fiscal first quarter, but said a major overhaul of its operations was starting to show signs of success after a remake of Assassin's Creed exceeded annual expectations in just two weeks.

The French videogame group said net bookings for the three months to the end of June slipped 9.2% on year to 255.8 million euros, equivalent to $291.9 million, above company guidance of around 250 million euros, but slightly below a Visible Alpha forecast of 261.6 million euros.

GLOBAL NEWS

Global Economy Picked Up Before Fresh Energy Hit

Business activity in Europe and parts of Asia picked up in July, an indication that the global economy was growing at a modest pace before the fresh surge in energy prices triggered by the resumption of hostilities between the U.S. and Iran takes a toll.

In June, the U.S. and Iran signed a memorandum of understanding to reopen the Strait of Hormuz, leading to a big fall in energy prices towards prewar levels. However, the resumption of military action earlier this month has pushed energy costs sharply higher.

House Lawmakers Introduce Bipartisan AI 'Kill Switch' Bill Following OpenAI Cyber Incident

Two members of Congress have introduced bipartisan legislation that would require developers of the most advanced artificial-intelligence systems to maintain the ability to slow down, suspend or shut down their models if they pose serious risks.

The AI Kill Switch Act would give the Homeland Security Department authority to order companies to take emergency action against AI systems that could cause catastrophic harm, in consultation with the Commerce secretary and the director of national intelligence.

Trump Adds New Israel Hurdle to Saudi Nuclear Deal

WASHINGTON-President Trump said the fate of a landmark agreement to provide Saudi Arabia with a civilian nuclear program was contingent on the kingdom normalizing relations with Israel, adding a condition to the deal that could complicate its path forward.

The deal "will be approved, but is totally subject to Saudi Arabia joining the very respected and successful Abraham Accords," Trump wrote Thursday on Truth Social, referring to a series of agreements brokered by the U.S. to normalize relations between Arab nations and Israel.

GOP Lawmakers Stick With Trump as War Anxiety Rises

WASHINGTON-Republicans are standing firmly behind President Trump as he struggles to extricate the U.S. from the war he launched with Iran nearly five months ago, despite signs that Americans are growing weary of the fighting and its economic impact headed into the midterm elections.

In the latest test of congressional Republicans' patience, a Democratic-backed measure to rein in the president's war powers passed 214-208 in the narrowly divided chamber Thursday, but all but four GOP House lawmakers voted against the resolution. That marked no change from a tally last month that also gauged support for the president's handling of the conflict.

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(END) Dow Jones Newswires

July 24, 2026 05:00 ET (09:00 GMT)

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