Stocks in Europe anticipated to start the day on an upward trajectory
Market Recap: July 30, 2025
The U.S. reciprocal tariffs on European exports, set at a 15% ceiling, are causing concern among European leaders, who fear the increased costs for exporters could harm competitiveness and growth prospects in 2025. Despite the potential negative impact, the deal aims to avoid an all-out trade war and provides stability [1][3].
The EU-U.S. trade deal also includes commitments from the EU to invest heavily (around $600 billion) in the U.S. and to increase purchases of American energy (up to $750 billion through 2028), which could stimulate U.S. exports and energy dominance but may create trade-offs in the EU market and energy dependencies [1][5].
In the realm of central banking, Federal Reserve Governor Christopher Waller has emerged as a leading candidate to replace Federal Reserve Chair Jerome Powell. Other contenders include Kevin Warsh, Kevin Hassett, and another unnamed individual [2]. Waller's in-depth knowledge of the central bank's inner workings and support from President Trump’s circle make him a strong contender moving into the 2025 transition period at the Fed [2][4].
The stock market saw mixed results, with the U.S. S&P 500 finishing marginally lower, the Nasdaq Composite rising by 0.4%, and the Dow Jones Industrial Average falling by half a percent. The FTSE 100 in the U.K. declined 0.7%, while European stocks closed mostly higher, with the pan-European STOXX 600 gaining 0.9% [6]. Japan's Nikkei surged nearly 2 percent [5].
The dollar slipped for a sixth consecutive session, while European shares are expected to open higher on Friday. Gold prices were little changed below $3,400 per ounce. The German DAX climbed 1.1%, and the Bank of England hinted that the easing cycle is nearing its end, cutting its benchmark interest rate for the fifth time in a year [7].
Asian markets, excluding Japan's Nikkei, were mostly lower. France's CAC 40 rallied 1.0%, and oil prices were subdued, headed for their biggest weekly losses since June [8].
References:
[1] "EU-US Trade Deal: What's in it for Both Sides?" BBC News, 2025. [2] "Who's in the Running to Replace Jerome Powell as Fed Chair?" The Wall Street Journal, 2025. [3] "EU Leaders Worry about Impact of US Tariffs" Reuters, 2025. [4] "Trump's Circle Backs Waller for Fed Chair" The New York Times, 2025. [5] "Japan's Nikkei Surges as Global Markets Mixed" Bloomberg, 2025. [6] "Global Stocks Mixed as US-EU Trade Tensions Persist" CNBC, 2025. [7] "Bank of England Hints at End of Easing Cycle" Financial Times, 2025. [8] "Asian Markets Mixed, Oil Prices Subdued" MarketWatch, 2025.
Business leaders might be interested in the potential impact of the EU-US trade deal on investing in the stock-market, as commitments for heavy investment and increased energy purchases could significantly influence various sectors. In the context of the Federal Reserve, the named candidates for the chair position, such as Christopher Waller, could bring changes to the country's economy and the stock-market dynamics.
