European stock markets rose Wednesday, brushing off US president Donald Trump鈥檚 tariff threats on copper and pharmaceuticals.
Investors kept an eye on countries seeking to hammer out tariff agreements before Trump鈥檚 new cut-off date of August 1.
The US president reignited trade jitters Tuesday by announcing a 50 per cent toll on copper imports and saying he was looking at 200 per cent tariffs on pharmaceuticals.
The news sent the price of copper 鈥� used in a wide range of things including cars, construction and telecoms 鈥� to a record high Tuesday.
The dollar and oil prices strengthened Wednesday.
Trump said he would allow pharmaceutical manufacturers time to relocate their operations into the United States before rolling out fresh duties.
Equity markets largely took the latest announcements in their stride as 鈥榙etails of when, how and who remain thin on the ground鈥�, said Derren Nathan, head of equity research at Hargreaves Lansdown.
London鈥檚 stock market edged up 0.3 per cent around midday, despite declines in heavyweight mining companies.
Paris and Frankfurt climbed one per cent.
Germany鈥檚 chancellor Friedrich Merz said he was 鈥榗autiously optimistic鈥� on the prospects of a deal between the European Union and US to avert Trump鈥檚 increased tariffs on the bloc.
The EU wants to strike a deal with the United States 鈥榠n the coming days鈥�, EU trade spokesman Olof Gill said Wednesday.
Trump warned he would not again extend his August 1 deadline to reach deals, after he pushed back his July 9 cut-off.
Wall Street ended on a mixed note Tuesday.
Asia saw similar moves Wednesday, with gains in Tokyo tempered by losses in Hong Kong and Shanghai.
鈥楾he market still seems to think that Trump will back down,鈥� said Neil Wilson, UK investor strategist at Saxo Markets.
Investors will also be looking to the publications of the minutes of the US central bank鈥檚 June meeting on Wednesday for signs of the path for interest rates.
There was little major reaction to data showing Chinese consumer prices rose in June for the first time since January, providing a much-needed bright spot for the world鈥檚 number two economy.
Still, that was tempered by a sharper-than-expected fall in factory gate prices that suggested there were further deflationary pressures.
In company news, shares in eyewear giant EssilorLuxottica jumped six per cent in Paris after Bloomberg reported that US tech titan Meta had acquired a minority stake in the group.
British advertising group WPP sank almost 20 per cent after it cut its 2025 outlook citing a 鈥榗hallenging economic backdrop鈥�.
