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European Stocks End Higher Amid US Data and Tariff Optimism

Strategic Insights

— 2 min read

European blue-chips ended Friday on a high note, shrugging off robust US data that may have reinforced the Federal Reserve's decision to hold interest rates. The FTSE 100 index closed up 0.7% to 8,798.91, while the FTSE 250 and AIM All-Share indices added 1.1% and 0.3%, respectively. The US Federal Reserve's core personal consumption expenditures price index rose 2.7% in May, accelerating from 2.6% in April. This data has sparked concerns that the Fed may not cut interest rates before September, despite President Donald Trump's push for immediate rate cuts.

Key Takeaways:

  • The FTSE 100 index closed up 63.31 points, 0.7%, at 8,798.91.
  • The FTSE 250 and AIM All-Share indices added 241.30 points, 1.1%, and 2.29 points, 0.3%, respectively.
  • European equities on Friday saw the CAC 40 in Paris jump 1.8%, while the DAX 40 in Frankfurt surged 1.6%.
  • The pound dipped to 1.3713 dollars at the time of the London equities close, compared to 1.3733 dollars on Thursday.
  • The euro stood at 1.1717 dollars, higher against 1.1698 dollars.
  • The US Federal Reserve's core personal consumption expenditures price index rose 2.7% in May.
  • The data has sparked concerns that the Fed may not cut interest rates before September.
  • Nike jumped 15% as the sportswear firm reported a drop in annual profit amid softer revenue and warned of a one billion dollar cost increase in 2026 due to new tariffs.
  • JD Sports rose 7.6%, the athleisure retailer leading the way on the FTSE 100 in a positive read across.
  • Stocks with an exposure to China, such as luxury fashion firm Burberry, added 7.1%.

Statistics:

  • The FTSE 100 has climbed 7.7% over the course of the whole first half of the year.
  • The CAC 40 in Paris jumped 1.8% on Friday.
  • The DAX 40 in Frankfurt surged 1.6% on Friday.
  • The dollar rose to 144.75 yen, trading higher against 144.48 yen.
  • The yield on the US 10-year Treasury narrowed to 4.27% from 4.28%.
  • The yield on the US 30-year Treasury narrowed to 4.82% from 4.84%.
  • The Dow Jones Industrial Average was up 1.0% in New York, while the S&P 500 and Nasdaq Composite each added 0.6%.

Sources:

  • Bloomberg, "European Stocks End Higher Amid US Data and Tariff Optimism"
  • Reuters, "US core PCE inflation rises to 2.7% in May, accelerating from April"
  • CNBC, "Nike's revenue drops 6% as tariff impact hurts profitability"
  • The Wall Street Journal, "Trump has considered selecting Powell's successor by September or October"

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