Stocks in Europe climb after a four-day decline, led by ABB's impressive performance
In the heart of mid-July 2025, European shares are edging higher, marking a respite after four consecutive sessions of losses, as optimism over ongoing US-EU trade talks buoys investor confidence. The pan-European STOXX 600 index climbed by 0.8% as of 0718 GMT on Thursday, with key sectors such as automobiles and technology witnessing significant growth [2].
The current negotiation status presents a mixed picture. EU Trade Chief, Maros Sefcovic, is in Washington for tariff talks, meeting US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer [6]. Despite challenges, US President Donald Trump has signaled openness to reaching an agreement, expressing optimism about deals with both the EU and India [3][4]. However, the EU has accused the US of resisting a trade deal and has prepared public consultations on potential countermeasures—such as additional tariffs—covering a wide range of US-origin imports [1]. Trump has also threatened a 30% tariff on most EU imports starting August 1, though his recent comments suggest a willingness to negotiate instead of escalating [2].
The rise in European shares is supported by strong quarterly results from Switzerland's ABB, which posted a record quarterly order intake, driven by strong US demand and for products used in data centres to support artificial intelligence [5]. ABB's shares jumped by 8.2% as a result [5]. ASML, a semiconductor company, also recovered from a 11% drop on Wednesday, rising by 1.7% [5]. Siemens and Schneider Electric, rivals to ABB, also saw their shares increase by 3.6% and 5.8% respectively [5]. These firms were among the top boosts to the European benchmark index.
Meanwhile, TSMC, the world's main producer of advanced AI chips, posted record profit in the second quarter [5]. Elsewhere, Evolution, a Swedish gaming technology company, gained 6.5% after reporting its second-quarter results [7]. European chipmakers also recouped some losses from the previous session.
Despite the positive momentum, uncertainty remains due to the tariff threats and stalled negotiations, which could dampen investor sentiment if unresolved. The EU's preparedness to impose countermeasures, such as additional tariffs on US-origin imports, continues to loom large over the trade talks [1]. Therefore, while optimism is returning to European equity markets, the unresolved tariff threat and ongoing negotiations sustain some caution among investors [1][2][4][5].
- The optimism over the ongoing US-EU trade talks, coupled with strong quarterly results from stocks like ABB and TSMC, has led to an increase in the pan-European STOXX 600 index, despite the lingering uncertainty stemming from potential tariff threats and stalled negotiations, especially as the EU prepares to impose countermeasures like additional tariffs on US-origin imports.
- The record profit posted by TSMC, the world's main producer of advanced AI chips, and the recovery of ASML, a semiconductor company, have contributed to the growth of the technology sector within Europe, which is among the key sectors that have seen significant growth following the positive sentiment in the stock markets.
- As the US President, Donald Trump, has signaled openness to reaching an agreement with the EU, US Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer, and EU Trade Chief, Maros Sefcovic, are holding tariff talks to address these challenges, with the potential for deals with both the EU and India in the horizon.
