European stocks edge higher; trade negotiations remain in focus

Investing.com - European stocks edged higher in cautious trading Wednesday, with investors attempting to gauge the full scope of U.S. President Donald Trump’s trade tariffs.

At 03:05 ET (07:05 GMT), the DAX index in Germany gained 0.4%, the CAC 40 in France climbed 0.4% and the FTSE 100 in the U.K. rose 0.3%.

Trade negotiations in spotlight

European investors this week have been in thrall to the latest news out of Washington in terms of negotiations on trade deals, with President Trump signing an executive order extending his July 9 deadline for trade agreements to Aug. 1, providing an additional three-week buffer for more discussions.

Trump said overnight there will be "no more extensions", but he had also called the Aug. 1 deadline "firm, but not 100% firm", so uncertainty remains.

Additionally, the U.S. president announced a 50% levy on copper imports and signaled that more sector-specific tariffs will come soon. He also threatened to impose tariffs of up to 200% on pharmaceutical exports into the U.S., but said that he will “give people about a year, year and a half” until the duties go into effect.

Investors are also awaiting a U.S.-EU trade deal amid speculation that an agreement could be imminent, although there are sufficient doubts to prompt Trump to say he’s drafting a tariff letter.

ECB speakers, Fed minutes in focus

There is little in the way of major European economic data scheduled Wednesday, so the focus may well be on ECB speakers Luis de Guindos speaks and Philip Lane during the session.

Elsewhere, Chinese consumer prices improved marginally in June, beating expectations while still remaining relatively subdued, but producer prices shrank more than expected, marking the 33rd consecutive month of contraction. The print was also at its lowest level since July 2023.

The Federal Reserve will also release minutes from its latest policy meeting later in the session, with investors keen for more insight into how policymakers see interest rates evolving over the rest of the year.

Renault looks for interim CEO - FT

In the corporate sector, there are no major earnings scheduled for Wednesday, but Renault (EPA:RENA) could be in the spotlight after the Financial Times reported the French auto giant is set to name an interim CEO next week as a replacement for Luca de Meo, who is set to leave to head Gucci owner Kering (EPA:PRTP).

Renault has narrowed its shortlist to internal candidates Denis Le Vot and Francois Provost, as well as former Stellantis (NYSE:STLA) (NYSE:STLA) executive Maxime Picat, the FT report said.

Oil prices slip on big U.S. inventory build

Crude prices retreated from two-week highs Wednesday after industry data showed a sharp increase in U.S. crude inventories amid concerns tariffs could curb demand for oil.

At 03:05 ET, Brent futures dropped 0.1% to $70.10 a barrel and U.S. West Texas Intermediate crude futures fell 0.1% to $68.28 a barrel.

Both contracts climbed to a two-week high on Tuesday, driven by supply disruption concerns from fresh Houthi attacks on Red Sea shipping lanes.

The American Petroleum Institute reported during the previous session a sharp, unexpected rise in U.S. crude oil inventories for the week ending on July 4, with a build of 7.1 million barrels, far exceeding the forecast 2.8 million‑barrel draw.

Market watchers now await confirmation from the Energy Information Administration report, due later in the day, especially as the Independence Day holiday weekend usually sees strong travel demand.