Markets Today: FTSE 100 Hits Record High Amid European Market Surge, Tesla & Alphabet Earnings Ahead

[Redator]

European Open - US/EU Trade Deal Hopes Rise

European stocks rose over 1% on Wednesday, driven by gains in carmaker shares, after US President Trump raised hopes for a trade deal with the EU following an agreement with Japan.

The STOXX 600 index climbed 1.1% to 550.14 after three days of losses, while the UK’s FTSE 100 hit a record high, rising 0.5%. France’s CAC 40 led the gains, jumping 1.3%.

Automobile stocks surged 3.6%, with companies like Mercedes-Benz, Volkswagen, and Porsche seeing increases of 5.1% to 7.4%, boosted by strong performance in Asia.

Trump’s trade deal with Japan reduced U.S. auto import tariffs from 25% to 15% and included $550 billion in US-bound investments and loans. This also improved the chances of an EU-US trade deal, as EU representatives were set to begin negotiations on Wednesday.

In the STOXX 600, Temenos saw the biggest gain, jumping 18.1% after raising its full-year earnings forecast.

UniCredit rose 3.4% as the Italian bank reported better-than-expected profits and improved its yearly outlook. Swiss company Lonza also gained 6.3% after beating profit expectations.

On the downside, Nokia dropped 7.7% after lowering its 2025 profit forecast, putting pressure on media stocks. ASM International fell 9.3%, the biggest drop in the index, due to disappointing second-quarter bookings.

SAP slipped 2.5% despite reporting higher profits, helped by cost cuts and strong demand.

Overall, European corporate earnings forecasts showed slight improvement on Tuesday.

On the FX front, the yen initially strengthened to 146.20 per dollar, its highest since July 11, after trade news. However, it later fell following reports that Ishiba plans to step down next month after losing an upper house election, something Ishiba has since denied.

The US dollar has been weak since Trump announced tariffs in April but has stabilized somewhat this month as those tariffs were paused for negotiations.

The euro dipped 0.1% to 1.1744 but stayed close to its four-year high from earlier this month. The British pound rose slightly to 1.1354.

The Australian dollar gained 0.4% to $0.6581, helped by optimism from the trade deal and higher metal prices, though caution remains.

Currency Power Balance

Source: OANDA Labs

Gold prices have continued their rise this morning despite the improvement in sentiment. Another factor highlighting the ongoing concerns from market participants around potential trade deals yet to be announced. Gold was last trading around around the $3330/oz handle.

How are Companies Responding to US Tariffs?

Given that Earnings season is now in full flow, Reuters have been tracking company responses to tariffs. As of July 23, Reuters has counted around 279 companies worldwide that have reacted to tariffs in some way or form.

The estimated costs to the companies stood at over $34 billion dollars as of the end of May. The tally by Reuters is based on various sources and statements from company officials and includes analysis of financial reports and interviews as well.

Source: LSEG

Central Banks have been cautious and have no doubt been keeping an eye on these increases as the idea is that this will be passed down to consumers once the August deadline has passed. This in turn could have implications for inflation moving forward and increase the cost of living for citizens across the globe.

Economic Data Releases and Final Thoughts

Looking at the economic calendar, it is a quiet day in terms of data releases with EU consumer confidence flash data due later in the day.

However, earnings season brings some big names after the market closes today. Among the big names reporting will be Alphabet (Google), Tesla, T-Mobile and IBM.

This will be the first glance for market participants from the mag 7 stocks which could stoke some interesting market reactions depending on the release.

For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)

Chart of the Day - FTSE 100 Index

From a technical standpoint, the FTSE 100 index is pushing higher now within touching distance of the 9100 handle.

Improved trade deal sentiment and the impressive rally on Wall Street could be the driving force.

The FTSE is now in overbought territory and this may be something worth monitoring moving forward.

Immediate support rests at 9048 before the 9000 handle comes into focus.

The upside does not have any historical data to focus on and thus i will look toward psychological numbers like 9250 and potentially 9500.

FTSE 100 Daily Chart, July 23. 2025

Source: TradingView.com (click to enlarge)

Follow Zain on Twitter/X for Additional Market News and Insights @zvawda

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