Heineken in Focus as US-EU Tariff Deal Boosts Markets

FTSE futures rose 0.5%, German DAX futures gained 1%, and US equity futures climbed 0.4%, with the S&P 500 on track for a sixth straight daily gain. The agreement includes tariff reductions on pharmaceuticals and cars, while aircraft face zero-for-zero tariffs and steel and aluminium remain at a 50% rate.

Equities

The FTSE 100 fell 0.2% on Friday but still posted a fifth straight weekly gain, rising 1.4% overall. Investors weighed mixed corporate results and economic data, while also watching for progress on a potential EU-US trade agreement. The FTSE 250 also slipped 0.2%, finishing the week 1% higher.

Among the UK’s biggest movers, NatWest shares rose 3.5% after the bank reported an 18% increase in first-half profit and announced a £750 million share buyback. Close Brothers climbed 4.9% following the £103.9 million sale of its execution services arm Winterflood to Marex. Budget airline Wizz Air surged 11.5% after being upgraded to “overweight” by Barclays.

Marshalls plunged 20.6% after it warned on full-year profit, leading declines in the construction and materials sector. Rightmove slipped 1.8% after the company said it expects slower sales growth in the second half of the year.

In the US, the S&P 500 rose 0.4% to a new closing high of 6,388.65, while the Nasdaq gained 0.24% to 21,108.32. The Dow added 0.47% to close at 44,901.92, just below its all-time high. All three indices ended the week higher, supported by solid earnings and anticipation of key events next week including the Federal Reserve’s policy meeting and major tech results.

Intel was the standout loser, falling 8.5% after the chipmaker warned of larger-than-expected quarterly losses and confirmed it had cancelled or paused new factory projects in the US and Europe. Amazon, Apple, Meta, and Microsoft — four members of the so-called ‘Magnificent 7’ — are due to report earnings next week, with investor focus on how AI-related spending is translating into profits and whether trade uncertainty is affecting their outlooks.

Forex & Commodities

The US dollar edged higher on Friday, with the dollar index rising 0.2% to 97.66, though it remained on course for a 0.8% weekly fall — its weakest showing since late June. The dollar was supported by stronger-than-expected economic data and easing trade tensions, despite a surprise drop in core capital goods orders. Against the yen, the dollar rose 0.4% to 147.59 but still faced a weekly decline of 0.9% as soft inflation data in Tokyo added to uncertainty ahead of the Bank of Japan's policy meeting. The euro held steady at $1.1741, set for a weekly gain of almost 1%, while the pound dropped 0.6% to $1.3434 after weaker-than-expected UK retail sales and jobs data. The euro climbed to 87.42 pence against sterling, its highest level since April.

Gold rose 0.2% to $3,342.73 per ounce on Monday, recovering from a recent low after the dollar slipped following the announcement of a US-EU trade agreement. The 15% tariff deal between Washington and Brussels, which halved the previously threatened rate, helped support sentiment in risk assets but kept gold steady as investors awaited the outcome of the Federal Reserve’s policy meeting. The Fed is expected to keep its benchmark rate in the 4.25%-4.50% range.

Oil prices moved higher in early Monday trading. Brent crude rose 0.89% to $69.05 per barrel, while US West Texas Intermediate crude climbed 0.91% to $65.75. The gains followed the US-EU trade deal and hopes of an extended US-China tariff truce, with both sides due to meet in Stockholm ahead of an August deadline. However, gains in oil were limited by expectations that OPEC+ will maintain its current output plans.