Must read: US/Japan tariff deal, carmakers, Informa
ii’s head of investment rounds up the morning’s big news.
23rd July 2025 09:23
by Victoria Scholar from interactive investor
GLOBAL MARKETS
Risk-on sentiment drives European markets higher, with the CAC40 up over 1% following Asia into the green after Japan strikes a trade deal with the United States. As part of the agreement, tariffs on Japanese autos will be reduced to 15% from 25%, sending stocks in the auto sector sharply higher, lifting the Nikkei by over 3.5%. French automakers like Stellantis NV (EURONEXT:STLAP) and Renault SA (EURONEXT:RNO) are also trading sharply higher on the back of the deal.
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However, Japanese 10-year bond yields surged to near 2008 crisis era highs as Prime Minister Shigeru Ishiba’s future appears uncertain. Media reports suggest Ishiba could step down next month after his election disappointment on Sunday.
After hitting a record close on Tuesday, the FTSE 100 continues its ascent. In corporate news, Fresnillo (LSE:FRES) shares are under pressure after it reiterated full-year silver production guidance.
Informa (LSE:INF) has surged to the top of the FTSE 100 thanks to better-than-expected earnings and an upgrade to its guidance. And according to the FT, Prudential (LSE:PRU) has launched a search to replace its chair.
On the continent, UniCredit SpA (MTA:UCG) shares are trading higher after it reported a much better than expected quarterly profit and upgraded its 2025 outlook. Software maker SAP SE (XETRA:SAP) shares fell after it disappointed investors by not upgrading its full-year profit guidance.
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Yesterday, the Bank of England governor Andrew Bailey warned Chancellor Rachel Reeves about the risks associated with deregulating the City. Meanwhile Reeves said she’s planning to stick to her fiscal rules in the budget.
US futures are pointing higher, fuelled by trade optimism. The S&P 500 hit a new record close on Tuesday with earnings from Alphabet Inc Class A (NASDAQ:GOOGL) and Tesla Inc (NASDAQ:TSLA) out later today.
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