Europe close: Stocks higher despite latest round of Trump tariffs

24th Jul 2026 16:35

(Sharecast News) - European shares rallied on Friday as investors assessed US President Donald Trump's latest tariffs and threats to global oil supplies from Houthi attacks in the Red Sea.

The Stoxx 600 rose 0.82% to 644.51, Germany's DAX gained 1.36% to 25,099.00, France's CAC 40 advanced 0.88% to 8,372.28 and London's FTSE 100 climbed 0.91% to 10,736.23.

Brent crude hit $100 overnight after Iran-backed Houthi forces attacked Saudi oil exports passing through the Bab al-Mandab Strait, before retreating and last trading down 4.51% at $96.15.

West Texas Intermediate fell 4.04% to $88.47.

"Having advanced all week, oil prices finally ran into some profit taking today, though further strikes at the weekend are still expected," said IG chief market analyst Chris Beauchamp.

"This is likely to be a temporary respite for stocks generally, since the US and Iran are no closer to beginning any kind of ceasefire talk.

"Instead, the pressure on equities is likely to resume next week,"

TickMill market strategy partner Patrick Munnelly said energy weakness acted as a drag on the FTSE, but unlike previous sessions, it did not dominate the broader index.

"Financial strength and better domestic data offset the decline in oil majors.

"That rotation was important because it showed the FTSE's weekly gain was not solely dependent on energy support.

"Banks, investment names and selected cyclicals were able to carry more of the market burden into the end of the week."

Trump also restarted his global trade offensive against more than 80 countries, invoking Section 301 of the Trade Act and anti-forced-labour laws after the Supreme Court ruled his previous tariff package illegal.

The measure allows the administration to maintain a near-universal tariff floor without relying on the presidential powers challenged in court.

"Trade policy added another complication," Munnelly said.

"The United States imposed new tariffs of 10% and 12.5% on goods from 60 trading partners, giving investors another risk to assess alongside Middle East escalation and central-bank uncertainty.

"The measures raise questions about global trade flows, corporate margins and supply-chain costs.

"For the UK market, the immediate impact may be uneven, but the broader concern is that tariffs could add to inflation pressure while weighing on global growth."

Euro area private sector activity expands

In economic news, eurozone private-sector activity expanded for the first time in four months in July, with the flash composite PMI rising to 51.9 from 50.0, well above forecasts of 50.3 and its highest since February.

The services index increased to a five-month high of 51.6 from 49.4, while manufacturing rose to a three-month high of 52.0 from 51.4 and factory output reached its strongest level since March 2022.

New orders grew for the first time in five months and at their fastest pace since April 2023, while export orders recorded their smallest decline in more than four years.

S&P Global's Chris Williamson said the figures pointed to quarterly GDP growth of around 0.3%, although geopolitical volatility threatened the recovery.

Germany returned to growth, France contracted marginally and the rest of the bloc recorded its strongest expansion in eight months.

The UK composite PMI also returned to growth, rising to a three-month high of 52.1 from 49.3 and beating forecasts of 49.8, helped by warm weather and the World Cup.

Services increased to 51.8 from 48.8 and manufacturing edged up to 52.8 from 52.5, although S&P Global warned that precautionary stockbuilding linked to Middle East supply disruption could make some factory growth short-lived.

UK retail sales meanwhile unexpectedly rose 1% in June after a 1.2% increase in May, against forecasts for a 0.3% decline, and were 4.2% higher year on year, compared with expectations of 2.3%.

Online sales reached 29.4% of total spending, the highest proportion since April 2021, up from 28.9% in May.

GfK consumer confidence rose six points to -17 in July, its largest monthly improvement since November 2023, as the backward-looking economic measure increased 10 points to -39, the 12-month outlook rose eight points to -28 and the major purchase index gained eight points to -12.

Wise slides on US banking licence denial, Valmet surges

In equities, Wise fell 4.9% after the fintech company said it had been denied a US banking licence.

Valmet Corporation surged 22.05% after the Finnish industrial group's second-quarter results beat expectations and its board launched a strategic review that could result in the business being split into two separately listed companies.

Reporting by Josh White for Sharecast.com.