FX.co ★ European Stocks Head Higher on Trade Deal Hopes

European equity markets appeared set for a positive opening on Thursday following news that the US and EU are nearing a trade agreement. The proposal reportedly includes a 15% baseline tariff on EU goods by the US, with potential exemptions under consideration. Investors are eagerly anticipating the European Central Bank's policy decision later today, where it is widely expected that interest rates will be kept steady due to ongoing trade uncertainties. Moreover, fresh economic insights are anticipated from the upcoming Eurozone flash PMI data and Germany’s GfK consumer confidence report. In corporate developments, Deutsche Bank reported stronger-than-expected second-quarter earnings, with robust performance in its investment division compensating for weaknesses in corporate banking. Additional earnings releases are expected from BNP Paribas, TotalEnergies, and Vodafone, among others. In premarket activity, futures for the Euro Stoxx 50 increased by 1.3%, while those for the Stoxx 600 rose by 0.9%.