London, UK – July 10, 2025 – As European markets close for the day, a nuanced picture emerges from the trading floors. While some indices celebrated significant gains, others experienced slight declines, reflecting a complex interplay of internal dynamics and ongoing global uncertainties, particularly surrounding evolving trade policies. Investors across the continent are closely watching developments, with tariff discussions between the EU and the US remaining a key focus.

FTSE 100 Soars to New Heights

The FTSE 100 (FTSE 100), London’s benchmark index, was a standout performer, closing at 8,972.17, a robust increase of +1.19%. This impressive climb saw the FTSE 100 reach fresh record levels, largely propelled by a strong showing from its mining constituents. News of proposed 50% tariffs on copper imports by the US, effective August 1st, appears to have spurred a surge in demand and a rush to import copper, boosting the sector. While global copper prices on the London Metals Exchange have seen a dip, creating a divergence, the immediate impact on FTSE-listed miners was positive.

MSCI Europe and ^N100 Show Modest Gains

The broader MSCI EUROPE index recorded a respectable gain of +0.30%, ending the day at 2,457.66. This indicates a general, albeit moderate, positive sentiment across the wider European developed markets. Similarly, the ^N100 index also saw a positive close, up +0.22% at 1,604.02, reinforcing the impression of a cautiously optimistic mood among investors.

CAC 40 Holds Steady Amidst Trade Deal Hopes

France’s CAC 40 closed with a modest gain of +0.18%, settling at 7,892.55. The French index, heavily weighted towards luxury, energy, and industrial exports, appears to be holding steady as investors remain hopeful for a potential trade deal between the European Union and the United States. Negotiators are reportedly making progress on a framework agreement, with a focus on protecting the EU auto industry.

EURO STOXX 50 I and DAX P Experience Slight Pullbacks

In contrast to the gains seen elsewhere, the EURO STOXX 50 I index dipped slightly, down -0.18% to 5,436.07. This slight decline suggests some cautious profit-taking or perhaps a more measured reaction to the overall market landscape among the Euro Area’s blue-chip companies.

Germany’s DAX P also saw a minor decline of -0.33%, closing at 24,467.98. Despite recent record highs for the DAX, today’s slight retreat could be attributed to ongoing anxieties about potential trade conflicts or a natural correction after a period of strong performance. Germany, as an export-heavy economy, remains sensitive to global growth shocks and supply chain disruptions.

Currency Markets: A Day of Minor Fluctuations

On the currency front, both the British Pound and the Euro experienced slight depreciations against a basket of currencies. The British Pound Index (BXY) edged down -0.19% to 135.60, while the Euro Index (EXY) saw a slightly larger decrease of -0.28%, closing at 116.86. These minor fluctuations suggest a relatively stable currency market, though underlying trade tensions continue to influence sentiment.

Looking Ahead: Tariffs and Central Bank Policies in Focus

The European market close reveals a market grappling with persistent uncertainty surrounding global trade. While certain sectors, like mining in the UK, found immediate benefit from recent announcements, the broader sentiment remains influenced by the prospect of escalating tariffs. Investors will be keenly awaiting further details on EU-US trade negotiations and any signals from central banks regarding future monetary policy, especially in light of inflationary pressures that could arise from new tariffs. The interplay of these factors will undoubtedly shape the direction of European markets in the coming days.