Markets Today: FTSE 100 Breaks Records as Euro Area Private Sector Growth Hits 11-Month Highs, ECB Meeting Ahead

[Redator]

Asia Market Wrap - Sentiment on the Up

Global stocks hit a new record high, boosted by a 1% rise in Asia. Japanese markets surged up to 2%, driven by strong performance in the financial sector, while the yen strengthened as investors believed a trade deal could lead to an interest rate hike.

Nasdaq 100 futures climbed 0.3% after Alphabet's earnings, but Tesla shares fell in after-hours trading due to a weak forecast.

Easing global trade tensions have calmed investors, reducing fears of a long trade war and driving market gains. Many believe the US will take a practical approach to avoid tariffs significantly hurting company profits.

President Trump hinted he wouldn’t lower tariffs below 15% as he prepares new trade rules before the August 1 deadline.

For a more in depth look at the Asian session, read Asia midday: Asian stocks rise on AI optimism, US-EU trade hopes, EUR/GBP (Chart of the day) bullish trend intact as ECB looms

Euro Area PMIs

The HCOB Eurozone Composite PMI rose to 51 in July 2025, up from 50.6 in June, showing the fastest growth in private economic activity in 11 months and slightly beating expectations of 50.8.

The growth was driven by stronger performance in the services sector (51.2 vs 50.5 in June) and a near recovery in manufacturing (49.8 vs 49.5), which had its least negative result in three years. New orders remained steady, ending 13 months of decline, which helped boost output in both sectors.

This positive trend in new business encouraged companies to hire more staff for the first time in five months. On prices, input costs rose at a slower pace, allowing firms to keep their prices steady after two months of cuts. However, business confidence dipped slightly, likely due to ongoing concerns about US tariff threats.

European Open - US/EU Trade Negotiation, ECB Meeting

Optimism about a trade deal pushed global stocks to new record highs on Thursday. This came ahead of key global economic data, a European Central Bank meeting, and an unexpected visit to the Federal Reserve by US President Donald Trump.

Reports that the EU and US were nearing a deal on 15% tariffs, with exceptions for some industries, followed a recent agreement with Japan. This boosted the MSCI world stock index for the seventh day in a row.

In Europe, the positive trend continued as Germany's DAX index, which relies heavily on exports, rose over 1%, and the STOXX regional index gained 0.6%.

Deutsche Bank's better-than-expected results sent its shares up more than 4%, lifting banking stocks to their highest level since the 2008 financial crisis. However, Nestle's shares dropped 4.5% after it announced its first-half results and plans to sell one of its businesses.

The pound fell by 0.28% to 1.3544 after reaching a two-week high of 1.3588 earlier in the session.

The dollar gained slightly against the euro and yen following progress in trade talks.

The pound also weakened against the euro, which dropped 0.16% to 86.81. Last week, the euro reached 86.98, its highest level since April 11.

Currency Power Balance

Source: OANDA Labs

In commodity markets, oil prices went up as traders speculated that recent trade deals would boost global growth. Prices also rose due to a bigger-than-expected drop in US crude stockpiles. US crude increased by 0.52% to 65.59 per barrel.

Meanwhile, gold prices dipped slightly to $3,370 per ounce as investors showed more interest in riskier assets, reducing demand for safe-haven options like

Economic Data Releases and Final Thoughts

Looking at the economic calendar, we are finally getting some high impact later today.

First we have the ECB meeting where the Central Bank is expected to keep rates on hold, with 90% probability based on LSEG data.

Earnings season continues today and then later in the US session we will get the latest PMI numbers from the world's largest economy as well.

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 has continued its rise with an amazing four-hour candle close this morning.

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

The FTSE is now comfortably in overbought territory and we are seeing a slight pullback this morning.

Immediate support rests at 9110 before the 9048 and 9000 handles 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 24. 2025

Source: TradingView.com (click to enlarge)

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