European stocks open slightly higher

Both the STOXX 50 and the broader STOXX 600 edged up modestly by 0.1% on Tuesday, as investors remained cautious but attentive to ongoing trade negotiations between the European Union and the United States.

Market participants are closely monitoring developments ahead of the looming July 9th deadline, when reciprocal tariffs could come into effect if no agreement is reached. According to Bloomberg, the EU has expressed openness to a potential compromise involving a 10% universal tariff applied to a wide range of its exports.

However, European officials are simultaneously seeking meaningful concessions from the US in key sectors that are critical to the region’s economy, including pharmaceuticals, alcoholic beverages, semiconductors, and commercial aircraft manufacturing.

In an effort to push the talks forward, the EU’s trade chief is scheduled to lead a high-level delegation to Washington this week, underscoring the seriousness with which both sides are approaching the negotiations. Sources familiar with the matter told Bloomberg that this visit aims to bridge gaps and finalize terms before the tariff deadline.

On the macroeconomic front, preliminary data expected later this week are likely to show that Eurozone inflation held steady at the European Central Bank’s (ECB) 2% target rate in June, indicating price stability in the region. Adding to the cautious optimism, ECB Chief Economist Philip Lane recently commented that the central bank’s tightening cycle appears to have concluded for the time being, suggesting that interest rates may remain steady in the near term.

Turning to corporate performance, several blue-chip European companies saw mixed results in Tuesday’s trading session. Technology giant SAP led gains with a 0.6% increase, followed by Nestlé and luxury goods powerhouse LVMH, which rose 0.2% and 0.7% respectively. On the downside, luxury brand Hermes slipped 0.7%, while semiconductor manufacturer ASML Holding and pharmaceutical company Novo Nordisk each gave back 0.5%, reflecting some investor caution amid the broader geopolitical and economic uncertainties.