Market Movers European Session – Risk Appetite Is Back

# Market Movers: European Session – Risk Appetite Is Back

**Note**: This analysis is generated during the European market session, with European markets actively open. All economic event times are in US Eastern Time (New York time). Nikkei 225 is closed.

## Major News

**Market Overview**

As European markets open, US futures indicate a strong start, with S&P 500 Futures up 0.96% at 6,457.50, Nasdaq Futures rising 1.36% to 23,799.00, and Dow Futures increasing by 0.36% to 44,792.00. In Europe, major indices are also in positive territory, with the DAX up 0.55% at 24,395.50, the EURO STOXX 50 climbing 0.33% to 5,410.81, and the FTSE 100 rising 0.42% to 9,175.03. Meanwhile, the Nikkei 225 is closed, having ended the previous session at 41,069.82, up 1.02%. Overall, the market sentiment appears buoyed by recent economic data and corporate earnings reports.

**Market Reactions and Stock Movements**

Recent economic reports have provided mixed signals to investors, influencing stock movements across various sectors. The U.S. economy grew at a better-than-expected annualized rate of 3% in the second quarter, exceeding the consensus estimate of 2.3%. This robust growth has helped bolster investor confidence, particularly in the context of ongoing tariff discussions. Private sector hiring also showed signs of recovery, with an increase of 104,000 jobs in July reported by ADP, reversing a previous loss of 23,000 jobs in June.

Despite these positive indicators, companies are grappling with the implications of tariffs. Firms like Stanley Black & Decker and Conagra have reported that tariffs could cost them hundreds of millions, prompting a reevaluation of their pricing strategies and supply chains. This has led to a cautious approach among investors as they weigh the potential costs against the backdrop of solid economic growth.

**Geopolitical Factors and Tariffs**

Geopolitical tensions, particularly surrounding trade policies, remain a significant factor in market dynamics. The ongoing trade war initiated by President Trump has raised concerns about its impact on global trade, yet recent analyses suggest that the situation may not be as dire as initially feared. Economists point to various factors, including a resilient U.S. economy and adjustments by companies to mitigate tariff impacts, as reasons for a more optimistic outlook.

In the UK, a new trade deal with India, projected to boost bilateral trade by over $34 billion annually, has been signed, highlighting the potential for positive economic developments despite Brexit-related challenges. Conversely, Trump’s threatened 30% tariffs on EU goods have raised alarms among exporters, with industry leaders warning that such tariffs could create a lose-lose scenario for both sides.

**Corporate Earnings and Strategic Moves**

Corporate earnings reports are playing a pivotal role in shaping market sentiment. Companies are increasingly vocal about the financial impact of tariffs, with many reassessing their strategies in light of rising costs. The sentiment on Wall Street appears to be shifting, as some analysts suggest that the trade landscape is beginning to stabilize, allowing for a more favorable environment for corporate performance.

Additionally, President Trump’s recent comments expressing confidence that Federal Reserve Chair Jerome Powell is prepared to lower interest rates have added another layer of complexity to the market outlook. This follows a series of discussions surrounding the Fed’s independence and its future policy direction, which could influence investor sentiment in the coming weeks.

Despite the challenges posed by tariffs, some sectors are finding unexpected benefits. For instance, Trump’s aluminum tariffs have inadvertently spurred a green recycling boom, as companies seek to adapt to new market realities. This highlights the dynamic nature of the current economic environment, where businesses are not only facing challenges but also identifying opportunities for growth.

**Current Market Overview**

In summary, European markets are demonstrating resilience amid a backdrop of mixed economic signals and geopolitical tensions. While the U.S. economy shows robust growth and employment gains, the ongoing tariff situation continues to pose risks for various sectors. Investors are closely monitoring corporate earnings reports and central bank decisions, which will play a crucial role in shaping market direction. As the European session progresses, the interplay between economic indicators and geopolitical developments will remain pivotal in influencing investor sentiment and stock movements across the region.

## Performances

### US Futures

The following table shows the latest price and daily performance of US futures.

**Note**:
– Prices are in USD.
– Daily Change (%) is calculated as (Close – Previous Close) / Previous Close * 100.
– ‘N/A’ indicates data not available.

### European and Asian Indices

The following table shows the latest closing price and daily performance of major European and Asian indices.

**Note**:
– Prices are in local currency or points.
– Daily Change (%) is calculated as (Close – Previous Close) / Previous Close * 100.
– ‘N/A’ indicates data not available.
– Nikkei 225 is closed during European session.

### FX Performance

The following table shows the latest exchange rate and daily performance of major currency pairs.

**Note**:
– Prices are the exchange rate (e.g., EUR/USD = USD per EUR).
– Daily Change (%) is calculated as (Close – Previous Close) / Previous Close * 100.
– ‘N/A’ indicates data not available.

### Commodities Performance

The following table shows the latest price and daily performance of major commodities.

**Note**:
– Prices are in USD per unit (e.g., per barrel for Crude Oil, per ounce for Gold).
– Daily Change (%) is calculated as (Close – Previous Close) / Previous Close * 100.
– ‘N/A’ indicates data not available.

### BTC and ETH Performance

The following table shows the latest price and daily performance of BTC and ETH.

**Note**:
– Prices are in USD.
– Daily Change (%) is calculated as (Close – Previous Close) / Previous Close * 100.
– ‘N/A’ indicates data not available.

## Economic Calendar of Today (Most Important Events)

The following table lists high-importance economic events for today, 2025-07-31, with times in US Eastern Time.

**Notes**:
– **Cur**: Currency associated with the event (with flag emoji).
– **Imp**: Importance (High, Medium, Low, None).
– **Actual**: Reported value (if available).
– **Forecast**: Expected value (if available).

On July 31, 2025, several key economic indicators are set to be released that may significantly impact financial markets, particularly in the ongoing European session.

At 08:00 ET, the German Consumer Price Index (CPI) for July is expected to show a modest monthly increase of 0.2%. This figure is crucial as it reflects inflation trends within Europe’s largest economy, influencing the European Central Bank’s monetary policy decisions. A surprise deviation from the forecast could lead to volatility in the euro, impacting European equities and bond markets.

Shortly thereafter, at 08:30 ET, the U.S. Core Personal Consumption Expenditures (PCE) Price Index for June will be reported, with expectations set at 2.7% year-over-year and 0.3% month-over-month. The Core PCE is the Federal Reserve’s preferred inflation gauge, and any significant surprise in these figures could shift market sentiment regarding future interest rate hikes, thereby affecting the U.S. dollar and broader financial markets.

Additionally, the Initial Jobless Claims for the week are also due at 08:30 ET, with a forecast of 222,000 claims. This data point is essential for assessing the health of the U.S. labor market, and a notable deviation could influence investor confidence.

Finally, at 09:45 ET, the Chicago Purchasing Managers’ Index (PMI) for July is anticipated to be at 41.9. A reading below 50 indicates contraction in manufacturing activity, which could further impact market outlooks.

As the European market session remains active, traders are closely monitoring these releases for any surprises that could lead to immediate market reactions.

## Remaining Economic Calendar Comment for the Week (Important Events Only)

For the week of August 1, 2025, several high-importance economic events are scheduled that could significantly impact financial markets, particularly as the European session is currently active, reflecting real-time trading activity.

At 05:00 ET, the Eurozone’s Consumer Price Index (CPI) for July is anticipated to show a year-over-year increase of 1.9%. This release is crucial as it provides insights into inflationary pressures within the Eurozone, impacting the EUR’s valuation.

The U.S. economic calendar is particularly busy at 08:30 ET with three key indicators: Average Hourly Earnings, Nonfarm Payrolls, and the Unemployment Rate. Average Hourly Earnings are forecasted to rise by 0.3%, indicating wage growth that could influence consumer spending. Nonfarm Payrolls are expected to show an addition of 108,000 jobs, while the Unemployment Rate is forecasted to hold steady at 4.2%. Any significant deviation from these forecasts could lead to heightened volatility in the USD, affecting equities and bond markets.

Later at 09:45 ET, the S&P Global Manufacturing PMI and at 10:00 ET, the ISM Manufacturing PMI are both projected at 49.5, suggesting a contraction in manufacturing activity. Additionally, ISM Manufacturing Prices are expected to be reported at 66.5, indicating inflationary pressures in the manufacturing sector.

Overall, the outcomes of these events will be closely monitored by traders and analysts, as they will provide critical insights into the health of both the U.S. and Eurozone economies, influencing market sentiment and positioning.