Europe midday: Shares up on hopes of US-EU trade deal
By Frank Prenesti
Date: Tuesday 27 May 2025
(Sharecast News) - European shares opened higher and Germany's benchmark index hit a fresh record on Tuesday as bond yields fell after US President Donald Trump paused on his threat to hit the European Union with tariffs of 50%.
The pan-regional Stoxx 600 index was up 0.54% at 553 with most major bourses higher. France's CAC 40 rose after data showed consumer prices rose less than anticipated in May, signalling subdued inflationary pressure, and Germany's DAX rose almost 1% to a fresh intra-day high of 24,232.
"US futures point to a higher open on indices, as optimism spreads after the holiday break. (President Donald) Trump once again has pressed the pause button, this time on proposed 50% tariffs on imports from the European Union, which caused nervousness at the end of last week," said Hargreaves Lansdown analyst Susannah Streeter.
"The DAX and CAC-40 had already gained ground on Monday, after the extension to talks was announced with the European Commission."
"Still, plenty of uncertainty remains about the exact outcome in the raft of ongoing negotiations with nations around the world."
German 10-year bunds were 4 basis points lower, while UK's 10-year yield fell by the same amount.
In economic news, economic sentiment across Europe rose, according to data from the European Commission, with its sentiment indicator (ESI) improving in both the EU, up 0.6 points to 95.2, and the eurozone, which gained 1 point to 94.8.
Consumer confidence in Germany rose to its highest mark in seven months as economic expectations reached a two-year high despite overall sentiment remaining "extremely low", according to a survey by NIQ and the Nuremberg Institute for Market Decisions (NIM).
The forward-looking consumer climate indicator forecast an increase of just 0.9 points to -19.9 for June. This was the third straight improvement and marked the highest level since November.
But while the index remains firmly higher than the record lows of -42.8 seen in late-2022, it still remains well below the long-term average.
Reporting by Frank Prenesti for Sharecast.com
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