European stock prices rose slightly during Wednesday because investors believed U.S.-China tariff negotiations could produce positive outcomes despite the approaching deadline for new trade agreements. President Donald Trump has established a Wednesday deadline for trading partners to submit proposals that would prevent the upcoming July tariffs.
Major European stock indexes experienced positive movement despite the approaching deadline. The dollar-denominated MSCI All-Country index reached its highest point ever because of a declining U.S. currency value. The market maintained a cautious stance because traders expected a possible meeting between Trump and Chinese President Xi Jinping.
Trump’s Truth Social post about Xi Jinping being “VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH” reduced the initial market optimism. According to Amelie Derambure of Amundi in Paris investors believe Trump’s forceful tariff strategy will not harm U.S. economic expansion. She declared that markets trust the administration to maintain economic growth.
The dollar index maintained stability at 99.171 while the euro strengthened 0.1% against the dollar to reach $1.1383. The approaching tariff deadline creates potential market volatility according to Derambure. The market will watch U.S. data releases throughout the day to determine how businesses adjust to trade uncertainty before the release of monthly payroll numbers on Friday.
The tariff policy of Trump drives investors to seek safe-haven assets including gold and the Swiss franc because they anticipate economic damage. The ongoing trade approach of Trump continues to create market uncertainty despite Wednesday’s peaceful market conditions.
