European stocks edge higher; sentiment boosted by U.K. trade deal
European equity indices edged higher Friday, as the new U.S.-U.K. trade deal offered hope that it could provide a framework for agreements elsewhere, lessening global trade tensions.
At 03:10 ET (07:10 GMT), the DAX index in Germany climbed 0.7%, the CAC 40 in France gained 0.7% and the FTSE 100 in the U.K. rose 0.4%.
U.K. deal offers framework for others
The U.S. signed a framework for a trade deal with the United Kingdom (TADAWUL:4280) on Thursday, under which the 10% tariff imposed on goods imported from the U.K. remains in place, while the U.K. agreed to lower its tariffs to 1.8% from 5.1%.
Moreover, steel and aluminum imports to the U.S. would be exempt from Trump’s 25% levy.
Soon after the announcement, U.S. Commerce Secretary Howard Lutnick said in media interviews that the U.S. plans dozens of trade deals soon but will likely keep a universal 10% tariff.
This has raised optimism that the weekend’s negotiations between the U.S. and China will result in an agreement, potentially resulting in a thaw in the trade war between the two largest economies in the world.
China exports surge
The economic data slate is largely empty on Europe Friday, suggesting that trade news will be the key sentiment driver.
Elsewhere, China’s exports topped forecasts in April, buoyed by demand for materials from overseas manufacturers who rushed out goods to make the most of U.S. President Donald Trump’s 90-day tariff pause.
Outbound shipments from the world’s second-largest economy rose 8.1% year-on-year in April, while imports fell 0.2%, pointing to improving domestic demand as policymakers continue to take steps to prop up the $19 trillion economy.
Commerzbank reports surprise profit
This has been a week of heavy issuance of corporate results, and there are more to digest Friday.
Commerzbank (ETR:CBKG) reported a net profit increase of nearly 12% in the first quarter, defying expectations for a drop, as the German lender attempts to fend off a possible takeover by Italy’s UniCredit.
Mediobanca (OTC:MDIBY) posted a €1 billion net profit in the first nine months of the Italian lender’s fiscal year, driven by broad-based revenue growth and strong capital generation.
Norwegian industrial investment firm Aker (OL:AKER) reported a hefty profit for the first quarter of 2025, supported by gains from asset sales and dividend income.
Crude edges higher on trade optimism
Oil prices edged higher Friday, adding to the previous session’s gains as trade tensions eased ahead of talks between top oil consumers U.S. and China and after the announcement of a trade deal with the U.K..
At 03:10 ET, Brent futures climbed 0.8% to $63.32 a barrel, and U.S. West Texas Intermediate crude futures rose 0.8% to $60.38 a barrel.
Both contracts settled nearly 3% higher on Thursday.
Markets have been buoyed that the deal with the U.K. is an indication that the Trump administration is looking for more quick trade deals, especially with major oil importers such as China and India.
Talks with India are ongoing, while U.S. officials are set to meet their Chinese counterparts for trade talks this weekend.
Despite these gains, oil prices still remained close to four-year lows amid heightened economic uncertainty and its impact on crude demand.