US & world markets

European stock markets ended higher on Tuesday, benefiting from relief generated by U.S. President Donald Trump’s decision to wait until July 9 to allow negotiations with the European Union (EU) on tariffs.
In Paris, where gains faded at the end of the session, the CAC 40 ended on a stable note (-0.02%) at 7,826.79 points. In Frankfurt, the Dax gained 0.96% and in London, the FTSE 100 rose 0.69%. MIB 40124 +0.34%. IBEX 14244 +0.14%.
The EuroStoxx 50 index gained 0.55%, the FTSEurofirst 300 0.33% and the Stoxx 600 0.45%.
The easing of trade tensions between the United States and Brussels led to a second consecutive session of gains for European stock markets on Tuesday, which welcomed the US president’s retreat on his threat to impose 50% tariffs on the EU from June 1 and the reinstatement of the July 9 deadline to give negotiations a chance.
The European Commission, which is preparing for the talks, has asked major European companies and company executives to detail their plans to invest in the United States, according to two sources familiar with the matter.
The White House tenant said on Tuesday that he hoped the EU would “open up” to trade with the United States, although he reiterated his threat to impose surcharges unilaterally if a deal was not reached.
The easing of bond tensions also helped boost equities, as the yield on 30-year U.S. Treasuries had recently soared on fears over U.S. debt, which could rise further with the tax cut bill currently before Congress.
On the macroeconomic front, investors learned on Tuesday that inflation in France fell in May to its lowest level since December 2020, a “very encouraging sign of disinflation in action”, according to the governor of the Bank of France, François Villeroy de Galhau, who also said that the normalisation of monetary policy by the European Central Bank (ECB) was “probably not complete”.
Markets are pricing in a 90% chance of a 25 basis point ECB rate cut at next week’s meeting.
The titles that stood out:
In Paris, Elis gained 2%, the cleaning services specialist forecasting annual growth in its turnover and a gradual improvement in its EBITDA margin.
Elsewhere in Europe, Telecom Italia shares fell 2.1% after an Italian court decision to delay the reimbursement of 1 billion euros in royalties to the telecommunications group.
The European defence sector gained 1.6%, helped by the context of escalating tensions between Russia and Ukraine and the green light from Brussels to the creation of a €150 billion joint defence procurement programme.
Indicator:
In Germany, consumer sentiment is expected to improve further as June approaches.
The German economy is still facing difficulties and is expected to contract in 2025 for the third consecutive year, by 0.3%, the German Federation of Chambers of Commerce and Industry (DIHK) estimated on Tuesday.
In the USA
The New York Stock Exchange ended higher on Tuesday, buoyed by investors’ appetite for risk, after U.S. President Donald Trump reneged on his threat of 50% tariffs on European Union products, in order to allow negotiations between Washington and Brussels to lead to a trade deal.
The Dow Jones Industrial Average gained 1.78%, or 740.58 points, to 42,343.65.
The broader S&P 500 gained 118.72 points, or 2.05%, to 5,921.54.
The Nasdaq Composite advanced 461.96 points, or 2.47%, to 19,199.16.
Wall Street’s “Magnificent Seven” contributed to the Nasdaq’s strong gains, while the S&P 500 returned to 5% of its record close on February 19 after tumbling in the wake of the vast so-called reciprocal taxes announced in early April by Donald Trump.
Investors’ appetite for risk also benefited from a report showing that US consumer confidence climbed more than expected in May.
Separately, Richmond Fed President Thomas Barkin told Bloomberg that economic data so far did not point to increased pressure on prices or unemployment, comments illustrating the views of many U.S. central bank officials.
The Fed is expected not to change interest rates until it sees the full impact of the Trump administration’s trade policy.
The minutes of the Fed’s latest monetary policy meeting are expected on Wednesday.
Among stocks, semiconductor stocks rose on the eve of Nvidia’s much-anticipated quarterly earnings release.
U.S. Treasury yields declined.

In currency markets, the dollar rallied on Tuesday, buoyed by Donald Trump’s decision to extend the deadline for tariffs against the EU.
The greenback gained 0.38% against a basket of benchmark currencies.
The euro lost 0.43% to $1.1338.
The ounce of gold fell 1.57% to $3307.
Rate
Long-term bond yields fell on Tuesday in the euro zone on encouraging French inflation data and as concerns about the impact of U.S. tariffs remain.
The yield on the 10-year German Bund fell 2.7 basis points to 2.5340%. The yield on the two-year bond ended flat at 1.7910%.
In the United States, the yield on 30-year Treasuries fell more than 8 basis points to 4.9562%, a move that reflected the decline in long-term Japanese sovereign yields, as Reuters reported on Tuesday that the Japanese finance ministry could reduce the issuance of these bonds.
The yield on the ten-year US bond lost 6 basis points to 4.4515%.
The Treasury Department will sell $69 billion in two-year bonds on Tuesday, then $70 billion and $44 billion in five- and seven-year bonds on Wednesday and Thursday.

Oil prices are retreating on concerns about a supply glut after the Iranian and U.S. delegations made progress in their talks and OPEC+ may decide to increase production at a meeting later in the week.
Brent crude lost 1.79% to $63.58 a barrel.
U.S. light crude WTI fell 1.89% to $60.37.