Key Facts
• European stocks on July 8 recovered earlier losses, rising 0.4%.
• Japan’s Economic Revitalization Minister Ryosho Akazawa held tariff talks with US Treasury Secretary Bessent.
• Both nations agreed to continue active discussions on US tariff measures.
• German 5-year bond auction demand weakened, with a bid-to-cover ratio of 1.5, down from 1.8.
• German 30-year bond yields rose 7 basis points to 3.19%, the highest since March 17.
• German 10-year bond yields increased 6 basis points to 2.71%, the highest since April 10.
• UK bonds also declined ahead of a 10-year bond auction scheduled for July 9.
Summary
European stocks rebounded on July 8, with the Stoxx Europe 600 Index rising 0.4%, driven by positive sentiment following a phone discussion between Japan’s Economic Revitalization Minister Ryosho Akazawa and US Treasury Secretary Bessent on tariff negotiations. Both parties committed to continuing active discussions on US tariff measures. Meanwhile, European bonds faced declines, with German 5-year bond auction demand weakening and yields on 30-year and 10-year bonds reaching multi-month highs. UK bonds also fell ahead of a 10-year bond auction set for July 9.
