European stock markets closed mostly higher on Tuesday, with Germany’s DAX reaching a new all-time high as bond yields declined following US President Donald Trump’s decision to delay proposed EU tariffs.
Key Market Highlights:
Stoxx 600 up 0.33% at 552.32, with most major European indices in positive territory.
Germany’s DAX surged 0.83% to a record high of 24,226.49.
France’s CAC 40 dipped slightly by 0.02% to 7,826.79 despite softer-than-expected inflation data.
US consumer confidence beat expectations, further boosting investor sentiment.
Market Drivers:
Trump’s tariff delay eased trade tensions between the US and EU, lifting market optimism.
German 10-year bund yields fell 2 basis points to 2.54%, while US long bond yields remained below 5%.
European economic sentiment improved, with the EU’s ESI rising to 95.2 (+0.6 points) and the eurozone’s climbing to 94.8 (+1 point).
Consumer Confidence & Economic Outlook:
German consumer sentiment hit a seven-month high, according to NIQ and the Nuremberg Institute for Market Decisions (NIM).
The forward-looking consumer climate indicator rose 0.9 points to -19.9 in June, marking the third consecutive monthly improvement.
Despite progress, sentiment remains below long-term averages, though well above the late-2022 lows of -42.8.
Analyst Insights:
Chris Beauchamp, chief market analyst at IG, noted: “UK and US investors returned from long weekends in a bullish mood after the sudden pause on EU tariffs. While the DAX hits new highs, the FTSE 100 lags, still 100 points shy of its peak.”