European markets experienced modest gains on Thursday, with the DAX closing at 24,293 points, a rise of 0.1 percent from the previous day’s close. Trading began cautiously, with initial losses widening before a late-day rally pushed the index into positive territory.
Market analysts noted that while purchasing managers’ indices across Europe showed some improvement, a single positive data point doesn’t necessarily signal a broader economic turnaround. Concerns surrounding the impact of US tariffs on European goods remain persistent, leading some to view recent economic forecast revisions with caution.
A joint statement issued by the EU and the US regarding trade provided some relief to investors. The agreement establishes a new US tariff structure capping duties at 15 percent for most EU exports, impacting sectors including automobiles, pharmaceuticals and semiconductors. Specifically, the 15 percent tariff ceiling on cars and auto parts will coincide with the EU initiating procedures to lower tariffs on US products. Certain goods, such as aircraft parts and basic chemical compounds, will continue to be subject to most-favored-nation tariff rates.
Rheinmetall and Commerzbank led gains amongst Frankfurt-listed stocks, while Sartorius, Beiersdorf and Deutsche Post saw the largest declines.
Commodity markets also saw movement. The price of natural gas increased by four percent, reaching 33 euros per megawatt-hour for September delivery, potentially translating to consumer prices of eight to ten cents per kilowatt-hour inclusive of all taxes and fees should current levels hold. Brent crude oil prices rose to 67.32 US dollars per barrel, a gain of 0.7 percent.
The Euro weakened slightly against the US dollar, trading at 1.1623 US dollars, while the dollar was valued at 0.8604 Euros.