Stoxx Europe 600 extends gains to 1%, hits intraday high

Stoxx Europe 600 extends gains to 1%, hits intraday high

The Stoxx Europe 600 index extended its gains to 1% on July 2, 2025, reaching an intraday high. This upward movement comes on the heels of positive developments in the U.S.-EU trade deal, which has provided a boost to investor confidence.

The Stoxx Europe 600 index, which tracks the performance of 600 leading European companies, has been buoyed by the news of the trade deal. The agreement, which aims to reduce tariffs and facilitate trade between the U.S. and the EU, has been well-received by the market. Companies across various sectors, including autos, retail, and energy, have shown positive reactions to the deal.

The Stoxx Europe autos index, for instance, led the gains during early morning deals, rising more than 1.5%. French car parts supplier Valeo, Jeep maker Stellantis, Porsche, and Mercedes-Benz Group were among the notable gainers. Meanwhile, the FTSE 100, CAC 40, and DAX also saw significant increases, with the FTSE 100 up 0.3%, the CAC 40 higher by 1.1%, and the DAX rising 0.7%.

The positive sentiment in the European markets is also reflected in the performance of individual stocks. Koninklijke Philips, for example, rose by 9.7%, and EssilorLuxottica climbed by 5.3%. On the other hand, stocks like Inchcape, which lost 6.4%, and Amundi, which slipped 4.6%, experienced declines.

The U.S. dollar has also been positively affected by the trade deal, climbing 0.2% to 95.9. This has led to a 0.53% fall in the euro against the U.S. dollar, making the greenback a more attractive investment option.

The trade deal has provided more certainty on U.S.-EU trade relations, but it still leaves some uncertainty about the economic impact of the changes. Mark Haefele, chief investment officer at UBS Global Wealth Management, noted that while the deal is a step forward, substantial market volatility is expected in the coming weeks.

The positive market reaction to the U.S.-EU trade deal has been largely driven by the expectation of reduced tariffs and increased trade between the two economic powers. However, the actual impact on the economy will depend on how these changes are implemented and how they are received by consumers and businesses.

The Stoxx Europe 600 index's performance is a reflection of the broader positive sentiment in the European markets. The index's gains have been driven by the anticipation of a more favorable trade environment, which is expected to boost economic growth and corporate profits.

Reference List:
[1] https://markets.businessinsider.com/index/stoxx_europe_600
[2] https://www.marketwatch.com/story/u-s-futures-european-stocks-edge-up-46855287
[3] https://www.cnbc.com/2025/07/28/stock-markets-stoxx-europe-600-ftse-100-dax-and-cac-40-set-to-rise-on-us-eu-deal.html