Wall Street stocks closed mixed as hopes for a US-EU trade agreement and anticipation around Big Tech earnings continued to sway investor sentiment. Weekly jobless claims in the United States fell to their lowest level since April, suggesting some improvement in the labour market. However, continuing claims remained near their highest levels since 2021, indicating that many unemployed workers are still struggling to secure new roles.
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In contrast, European markets ended the day largely higher. The FTSE 100 climbed 1%, its sixth consecutive day of gains, while Germany’s DAX rose 0.4%. France’s CAC 40 slipped 0.3%, but the pan-European STOXX 600 managed to edge up 0.3%, reaching its highest intraday level since mid-June. The pound dipped 0.3% against the US dollar, standing at 1.3541 by the close of trading.
A major driver of market sentiment in the UK was the announcement of a landmark trade agreement between Britain and India. Prime Minister Keir Starmer described the deal as “the biggest and most economically significant” post-Brexit trade pact, highlighting its benefits for key UK exports such as cars and whisky. The agreement also makes Indian textiles and jewellery more affordable to export to Britain and includes a mutual commitment to tackling illegal migration.
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Indian Prime Minister Narendra Modi, speaking through a translator, called the two countries “natural partners” and praised the deal as a “new chapter” in shared history. Meanwhile, EU diplomats signalled progress towards a US-EU trade deal that could see a 15% tariff introduced on certain exports such as cars and pharmaceuticals. The European Central Bank held interest rates steady at 2% after a series of cuts, as negotiations continued in the face of global trade uncertainty.
