European Markets Open Higher Amid Trade Deal Optimism

European markets experienced an upward trend at the opening on Tuesday, fueled by investor optimism surrounding the potential US-EU trade deal. With fourteen countries, primarily in Asia, facing possible tariff hikes starting August 1, the EU continues to negotiate a framework agreement. A CNBC-cited European diplomat suggested that the bloc might not receive a formal US letter on rate increases today, allowing more time for discussions. The prospective deal could feature a 10% base rate, with potential exemptions for aircraft and spirits.

Trade Balance Figures from France and Germany

Meanwhile, France and Germany have released their trade balance statistics for May, adding another layer of data for investors to consider amidst the ongoing trade talks.

Market Performance Highlights

At 9:00 am CET, the DAX saw a 0.33% increase, with Infineon Tech AG leading the charge with a 0.93% rise. The EURO STOXX 50 climbed 0.18%, buoyed by BBVA's 1.82% gain. The French CAC 40 edged up by 0.20%, as Pernod Ricard SA advanced 1.45%. In contrast, the United Kingdom's FTSE 100 remained flat at the opening. Currency markets also reflected positive sentiment, with the euro appreciating by 0.28% against the US dollar to $1.17419, and the pound strengthening by 0.20% to $1.36289 by 8:58 am CET.