European stocks edged higher Thursday, with investors monitoring the Israel-Iran ceasefire, the looming U.S. tariff deadline as well as the latest comments from Fed Chair Jerome Powell.
At 04:15 ET (07:15 GMT), the DAX index in Germany gained 0.5%, the CAC 40 in France climbed 0.4% and the FTSE 100 in the U.K. rose 0.1%.
Ceasefire, trade tariffs in focus
The ceasefire between Israel and Iran, brokered by U.S. President Trump earlier this week, appeared to be holding, relieving concerns of supply-chain disruptions that had pressured global markets.
However, the July 9 deadline for trade deals with the Trump administration is drawing nearer with very few signs of major agreements being signed, meaning the U.S. tariffs could very soon return to the markets’ radar.
Trump criticises Powell, again
Federal Reserve Chair Jerome Powell, speaking during congressional testimony on Wednesday, reiterated that interest rate cuts would wait until the inflationary impact of tariffs is clarified, noting that tariffs could push up prices beyond a one-time increase.
This cautious stance by Powell prompted more criticism from U.S. President Donald Trump , who said he plans to announce a replacement for Powell, whose term ends in May 2026.
“I know, within three or four people, who I’m going to pick,” Trump said. “He goes out pretty soon fortunately, because I think he’s terrible.”
A report from the Wall Street Journal said Trump has toyed with the idea of naming Fed Chair Jerome Powell’s replacement as early as September, which could undermine Powell’s authority for the remainder of his term to next May.
