This is the live blog for CNBC that covers the financial markets in Europe.
Euro slides as greenback boosted by U.S. trade optimism
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At 9:15 a.m. London time (4:15 a.m. ET), the euro was down 0.53% vs the U.S. dollar at $1.167, after the greenback saw significant gains following the announcement of the EU trade agreement on Sunday.
The main points of a 15% tariff on EU exports to the U.S. and a commitment for higher spending on U.S. energy and other goods were largely in line with market expectations and increased risk sentiment on Monday, according to a note from Mohamad Al-Saraf, associate in fixed income and FX research at Danske Bank, even though there is still uncertainty surrounding the arrangement for some sectors.
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In a risk-off climate, investors have historically turned to the U.S. dollar as a “safe haven” asset. However, because U.S. policy has been a major source of market volatility this year, that dynamic has frequently reversed.
Although the market’s response to the U.S.-EU trade agreement was favorable, ING strategists stated on Monday that foreign exchange traders will now focus on a plethora of U.S. data this week, including employment statistics, the second-quarter GDP, and Personal Consumption Expenditures, the Fed’s preferred inflation indicator.
Reid, Jenni
Money Report
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Brewers slide on Heineken results
Following Heineken’s better-than-expected first-half results, which indicated a softening of consumer sentiment in both the U.S. and Europe, shares of European beer producers fell on Monday.
By 8:43 a.m. London time (3:43 a.m. ET), there was a 3.5% decline in Heineken shares and a 0.8% decline in AB InBev and Carlsberg shares.
“Near-term, we anticipate ongoing macro-economic challenges that may affect consumer spending, including softening sentiment in Europe and the Americas, inflation pressures and the impact of a weaker US dollar, and broader geopolitical fluctuations,” Heineken stated in a statement.
Despite this, the Dutch brewer kept its full-year forecast for organic operating profit growth at 4% to 8%.
Gilchrist, Karen
Forvia says no change to forecast after EU-U.S. trade deal
reducing expenses at the car supplierIn the first half of 2025, Forviadrove’s core earnings increased by over 8%.
The France-based company reported sales of about 14 billion euros ($16.4 billion) in the first half of the year, but its CFO believes the EU-US trade pact won’t force it to alter its full-year goals. However, the company warns that it expects the industrial environment to remain unstable and uncertain.
Considine, Michael
European autos index up 1.5%
Following the announcement that the United States and the European Union had reached a framework trade agreement, European automakers soared on Monday morning.
On Sunday, U.S. President Donald Trump declared that the trade deal, which will see Washington lower tariffs on EU goods entering the United States to 15%, will be “great for cars.”
During early morning trading, the Stoxx Europe cars index led advances, rising more than 1.5%.
Valeo, a French provider of auto parts, was last seen up 5%. Porsche, Mercedes-Benz Group, and Jeep manufacturer Stellantis all saw increases of more than 2%.
Meredith, Sam
European stocks hit four-month high
Following the U.S.-EU trade agreement, European markets surged to a four-month high.
In addition to other regional bourses trading higher, the Stoxx Europe 600 index increased by 0.8%.
Germany’s DAX was up 0.7%, France’s CAC 40 was up 1.1%, and the UK’s FTSE 100 was up 0.3%.
Rao Ganesh
Heineken beats profit expectations
With a first-half operating profit of slightly over 1.4 billion euros ($1.6 billion), Heineken posted a beat.
The brewer is supporting its annual forecast, stating that it anticipates organic earnings to increase by 4-8%.
Martin, David
Opening calls
From London, good morning.
Stocks will start trading for the first time since the U.S. and European Union reached a trade agreement in less than an hour and a half.
With the index predicted to open 0.8% higher, futures linked to the Stoxx Europe 600 index indicate a solid start.
Regionally, it is anticipated that the French CAC 40 index will climb 0.4%, the German DAX will rise 1%, and the UK’s FTSE 100 will rise 0.5%.
Rao Ganesh
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