European stock index futures rise with optimism over potential US-EU trade agreement; Euro Stoxx 50 futures by 1.3%, Germany's DAX futures by 1.2%, and UK's FTSE 100 futures by 0.5%.

European stock index futures rise with optimism over potential US-EU trade agreement; Euro Stoxx 50 futures by 1.3%, Germany's DAX futures by 1.2%, and UK's FTSE 100 futures by 0.5%.

European stock index futures rose with optimism over the potential for a US-EU trade agreement to soften the blow of growth-denting tariffs. Euro Stoxx 50 futures surged by 1.3%, Germany's DAX futures gained 1.2%, and the UK's FTSE 100 futures increased by 0.5% [1].

The positive sentiment was driven by reports that the United States and the European Union were heading towards a 15% tariff deal, according to EU diplomats [2]. This potential agreement comes after the U.S. signed a significant trade deal with Japan, which has boosted confidence in the automotive sector. Leading gains in the tariff-sensitive sector were seen in Porsche, Stellantis, and Volkswagen, with Porsche trading 7.4% higher, Stellantis up 7%, and Volkswagen up 6.4% [1].

The automotive sector's optimism was further fueled by Temenos shares, which popped 21.2% after the company's Chief Financial Officer Takis Spiliopoulos told Reuters that tariff-related "wobbles" that hampered deal-making earlier this year were over [1]. The banking software company raised its full-year earnings before interest and taxes (EBIT) growth guidance to at least 9%, up from a previous forecast of 5%.

In contrast, SAP shares dipped despite reporting a 9% year-on-year revenue rise. The company noted that macroeconomic volatility and strength in the euro against the U.S. dollar were overshadowing profit growth. SAP's CFO Dominik Asam expressed hope from the Japan trade deal, despite acknowledging that customers were pushing out bookings amid tariff uncertainty [1].

The semiconductor sector also saw mixed results, with ASM International shares selling off after reporting a "lumpy" order intake in the second quarter. Meanwhile, Nokia shares fell 7% after warning of a $94 million tariff hit, highlighting the ongoing impact of tariffs on the telecoms industry [1].

Despite these mixed signals, the broader market optimism was evident in the rise of European stock index futures, reflecting investor confidence in the potential for a US-EU trade agreement to mitigate the impact of tariffs.

References:
[1] https://www.cnbc.com/2025/07/23/european-markets-on-weds-july-23-stoxx-600-ftse-dax-cac-.html
[2] https://www.reuters.com/markets/europe/automakers-propel-european-shares-two-week-highs-us-eu-trade-deal-optimism-2025-07-23/