European stocks edge higher on trade deadline delay; German exports fall

Published 08/07/2025, 08:08
© Reuters.

Investing.com - European stocks edged higher Tuesday as investors assessed the latest tariff news from U.S. President Donald Trump, awaiting further information on trade agreements. 

At 03:05 ET (07:05 GMT), the DAX index in Germany gained 0.3%, the CAC 40 in France climbed 0.1% and the FTSE 100 in the U.K. rose 0.1%. 

Trump extends trade agreements deadline

European investors have received a minor boost Tuesday with the indication that the Trump administration was open to more negotiation on trade deals, even after threats of increased U.S. trade tariffs.

U.S. President Donald Trump signed an executive order on Monday extending his July 9 deadline for trade agreements to Aug. 1, adding that this new deadline for imposing reciprocal tariffs is "not 100% firm” and that he’s open to alternate proposals if trade partners request changes.

He also announced new tariff rates on 14 nations, including Japan, Indonesia, South Korea, Serbia, and Tunisia, warning that duties of 25% on key allies such as Japan and South Korea will take effect if no deals are struck.

Notably, the higher tariffs will not combine with previously announced sector tariffs such as those on automobiles, steel, and aluminum.

The European Union was not among the nations that received a new tariff rate, and still aims to reach a trade deal by Wednesday after European Commission President Ursula von der Leyen and Trump had a "good exchange," a commission spokesperson said.

German exports fall in May 

On the European economic data slate, German exports fell more than expected in May as demand from the United States decreased following months of strong purchases in anticipation of U.S. tariffs, official data showed on Tuesday.

Exports fell by 1.4% in May compared with the previous month, below the 0.2% decrease forecast, with the exports of goods to the United States falling by 7.7% compared with April.

Novartis receives malaria drug approval

In the corporate sector, Novartis (SIX:NOVN) said it had received approval in Switzerland for Coartem Baby, which it said was the first drug to treat malaria in babies and young children.

Austrian energy company OMV  (VIE:OMVV) reported a decline in energy prices and production volumes in the second quarter of 2025, while chemical margins increased, according to its provisional trading update released Tuesday.

Oil prices retreat on trade uncertainty

Crude prices slipped lower Tuesday amid uncertainty over the potential impact of President Donald Trump’s tariff hikes on key trade partners, while lingering concerns from rising OPEC+ output added further pressure.

At 03:05 ET, Brent futures dropped 0.5% to $69.25 a barrel and U.S. West Texas Intermediate crude futures fell 0.6% to $67.50 a barrel.

Trump’s tariffs have prompted uncertainty across the market and concerns they could have a negative effect on the global economy and, consequently, on oil demand.

The Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, announced on Saturday that it will increase oil output by 548,000 barrels per day (bpd) in August.

The hike was larger than the 411,000 bpd increases already implemented for May, June, and July.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.