Report by Singular Bank
The main European indices closed virtually flat, after reaching new all-time highs during the early trading hours. The IBEX 35 rose by 0.2%, whilst the Euro Stoxx 50 ended with a slight decline of 0.1%.
At the close of European trading, in the United States, the S&P 500 was up 0.1%, whilst the Nasdaq 100 fell by 0.3%, weighed down by a drop in AMD’s share price after its outlook for the artificial intelligence business failed to meet investors’ high expectations.
By sector, Healthcare and Materials stood out within the Euro Stoxx 50, whilst Technology was the worst-performing sector.
The Eurozone composite PMI rose in July to 52 points, up from 50 in June, reaching its highest level since November 2025. The rise was underpinned by an improvement in the services sector and, in particular, by a strong rebound in new orders, which returned to expansionary territory. The figure reinforces the perception of a gradual recovery in European economic activity, although it was not enough to sustain the initial gains on the stock markets.
The trading session was once again dominated by negotiations to reopen the Strait of Hormuz. According to various reports, the United States, Iran and Oman are close to reaching a provisional 60-day agreement that would allow transit to return to normal without the imposition of tolls. Statements by Donald Trump, suggesting that the reopening could take place soon, reduced the risk premium on energy supplies and put downward pressure on oil and natural gas prices.
The corporate earnings season continued to provide moderate support for European equities. Glencore reported a strong improvement in profits, driven by its trading business and high copper prices, whilst the British retailer Next raised its full-year forecasts for the third time.
In the United States, the Treasury confirmed that it would maintain current issuance volumes unchanged over the coming quarters – a decision in line with expectations.
Government bonds recorded limited, generally upward movements following recent falls in yields.
Brent fell by 0.4% to $79 per barrel
Gold rose by 4% to $4,240 per ounce, making it the standout asset of the session.
In the currency markets, EUR/USD rose by 0.1% to 1.154.
