European stock markets closed higher on Friday, May 30, after two consecutive days of declines, despite the uncertainty generated by the ongoing legal battles surrounding the tariffs imposed by the Trump administration. Comments from a U.S. government representative stating that negotiations with the European Union were “on the right track” helped sustain the positive momentum.
Key Points:
- Market Performance:
- In London, the FTSE 100 rose by 0.64%, closing at 8,772.38 points, with a weekly gain of 0.62%.
- In Frankfurt, the DAX climbed 0.27%, ending at 23,997.48 points, buoyed by inflation data that met expectations, with a weekly increase of 1.56%.
- In Paris, the CAC 40 fell 0.36%, closing at 7,751.89 points, although it ended the week with a modest gain of 0.23%.
- The FTSE MIB in Milan gained 0.26%, reaching 40,087.40 points, with a weekly increase of 1.55%.
- In Madrid, the Ibex 35 rose 0.25%, closing at 14,152.20 points, but ended the week with a slight loss of 0.34%.
- The PSI 20 in Lisbon increased 0.17%, closing at 7,388.45 points, with a weekly gain of 0.79%.
- May Performance:
- In May, the major European indices recorded significant gains. The FTSE 100 rose by 3.27%, the DAX increased by 6.67%, the CAC 40 gained 2.08%, and the FTSE MIB appreciated by 6.60%. The Ibex 35 saw a remarkable 6.5% gain, marking its best May performance since 2007, according to Expansion. The PSI 20 posted a gain of 5.66%.
Tariff and Trade Uncertainty
U.S. Trade Representative Jamieson Greer mentioned that he would hold meetings with European Union representatives and other countries next week and that “intense conversations” were ongoing. His comments provided a boost to European markets, although gains were capped after President Donald Trump accused China of “completely violating” the trade agreement with the U.S.
Investors remain cautious amid the ongoing tariff uncertainties. On Wednesday, part of the restrictions imposed by Trump were overturned by the courts, but the U.S. Court of Appeals temporarily suspended the decision. However, the District Court of Columbia ruled the tariffs illegal.
Economic Data
- Italy and Portugal: Revised GDP figures for both countries confirmed earlier readings.
- Germany: Retail sales in Germany fell more than expected in April, and the German Consumer Price Index (CPI) showed a 2.1% annual increase in May.
