Sawt Falasteen - European stocks brush off Trump's copper, pharma tariff threats

Investors kept an eye on countries seeking to hammer out tariff agreements before Trump's new cut-off date of August 1.

The US president reignited trade jitters Tuesday by announcing a 50 percent toll on copper imports and saying he was looking at 200 percent tariffs on pharmaceuticals.

The news sent the price of copper -- used in a wide range of things including cars, construction and telecoms -- to a record high Tuesday.

The dollar and oil prices strengthened Wednesday.

Trump said he would allow pharmaceutical manufacturers time to relocate their operations into the United States before rolling out fresh duties.

Equity markets largely took the latest announcements in their stride as "details of when, how and who remain thin on the ground", said Derren Nathan, head of equity research at Hargreaves Lansdown.

London's stock market edged up 0.3 percent around midday, despite declines in heavyweight mining companies.

Paris and Frankfurt climbed one percent.

Germany's Chancellor Friedrich Merz said he was "cautiously optimistic" on the prospects of a deal between the European Union and US to avert Trump's increased tariffs on the bloc.

The EU wants to strike a deal with the United States "in the coming days", EU trade spokesman Olof Gill said Wednesday.

Trump warned he would not again extend his August 1 deadline to reach deals, after he pushed back his July 9 cut-off.

Wall Street ended on a mixed note Tuesday.

Asia saw similar moves Wednesday, with gains in Tokyo tempered by losses in Hong Kong and Shanghai.

"The market still seems to think that Trump will back down," said Neil Wilson, UK investor strategist at Saxo Markets.

Investors will also be looking to the publications of the minutes of the US central bank's June meeting on Wednesday for signs of the path for interest rates.

There was little major reaction to data showing Chinese consumer prices rose in June for the first time since January, providing a much-needed bright spot for the world's number two economy.

Still, that was tempered by a sharper-than-expected fall in factory gate prices that suggested there were further deflationary pressures.

In company news, shares in eyewear giant EssilorLuxottica jumped six percent in Paris after Bloomberg reported that US tech titan Meta had acquired a minority stake in the group.

British advertising group WPP sank almost 20 percent after it cut its 2025 outlook citing a "challenging economic backdrop".

- Key figures at around 1050 GMT -

London - FTSE 100: UP 0.3 percent at 8,882.57 points

Paris - CAC 40: UP 1.2 percent at 7,855.86

Frankfurt - DAX: UP 1.0 percent at 24,436.32

Tokyo - Nikkei 225: UP 0.3 percent at 39,821.28 (close)

Hong Kong - Hang Seng Index: DOWN 1.1 percent at 23,892.32 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,493.05 (close)

New York - Dow: DOWN 0.4 percent at 44,240.76 (close)

Euro/dollar: DOWN at $1.1707 from $1.1730 on Tuesday

Pound/dollar: DOWN at $1.3586 from $1.3592

Dollar/yen: UP at 146.64 yen from 146.53 yen

Euro/pound: DOWN at 86.17 pence from 86.27 pence

Brent North Sea Crude: UP 0.3 percent at $70.33 per barrel

West Texas Intermediate: UP 0.3 percent at $68.55 per barrel

H.Darwish--SF-PST