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As on : 28-Jul-2025

Market Commentary - Foreign Markets
28-Jul-2025 11:11

Wall Street Rallies on Trade Deal Hopes; European Markets Dip Amid Uncertainty

The Dow jumped 208.01 points (0.47) to finish at 44,901.92 while the NASDAQ gained 50.36 points (0.24%) to close at 21,108.32 and the S&P 500 improved 25.29 points (0.40%) to end at 6,388.64.

Wall Street gained strength on hopes that multiple trade agreements will be finalized before President Trump's August 1 deadline for extending reciprocal tariffs. With limited time remaining, many U.S. trading partners are pushing to avoid steep tariffs on their exports. In contrast, European markets remained subdued amid concerns over stalled negotiations and weak corporate earnings while EU officials remain cautiously optimistic about a trade deal, Trump's firm stance has raised doubts. In response, the EU has prepared countermeasures worth '93 billion, set to take effect on August 7 if talks collapse.

The pan European Stoxx 600 ended down 0.24%. The U.K.'s FTSE 100 and Germany's DAX closed lower by 0.26% and 0.41%. France's CAC 40 ended 0.17% up and Switzerland's SMI settled 0.75% down.

Crude oil fell on Friday on reports that the U.S. might allow partners of Venezuela's state-run PDVSA to resume operations, sparking concerns of over-supply. West Texas Intermediate crude for September delivery closed, down $0.88 (1.33%) to $65.15 per barrel.

Gold prices fell modestly on Friday as investors see a glimpse of positivity with news of more countries signing deals with the U.S. coming in and other major US trading partners.

Front Month Comex Gold for July delivery, lost by $37.00 (1.10%) to $3334.00 per troy ounce. Gold lost $19.00 (0.57%) for the week. Front Month Comex Silver for July delivery, lost by 85.40 cents (2.19%) to $38.167 per troy ounce. Silver lost 05.60 cents (0.15%) for the week.

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