Key Facts
• On July 18, European bonds lagged as U.S. bonds gained on rate cut expectations.
• German long-term bond yields rose 1–3 basis points (bp), with similar trends in the UK.
• European Central Bank (ECB) policy rate decision is scheduled for July 24.
• STOXX Europe 600 Index closed nearly flat, down 0.1% for the week.
• GSK shares fell 4.6% after a cancer drug failed to gain U.S. regulatory support.
• Energy stocks rose as the EU approved new sanctions on Russia, including oil price caps.
• European stock indices have been volatile in July amid U.S. trade negotiations.
Summary
On July 18, European bond yields rose, particularly for long-term bonds in Germany and the UK, following U.S. Federal Reserve comments hinting at an imminent rate cut. The STOXX Europe 600 Index showed minimal movement, closing nearly flat and down 0.1% for the week. GSK shares dropped 4.6% after a U.S. advisory panel rejected its cancer drug, weighing on healthcare stocks. Meanwhile, energy stocks gained as the EU approved new sanctions on Russia, including a review of oil price caps. Investors remain cautious amid ongoing U.S. trade negotiations, contributing to market volatility in July.
