Europe close: Stoxx closes up, with Ukraine, gold tariffs in focus

(Sharecast News) - European shares were mixed at the end of a busy week for earnings as traders eyed the latest moves by US President Donald Trump to broker a deal to end the Russia-Ukraine war, while gold futures soared on a report imports to America would be hit by tariffs. The pan-regional Stoxx 600 index closed 0.25% higher to 547.4. Germany's DAX was flat, while France's CAC 40 rose 0.44% and Britain's FTSE 100 gave up gains to be down 0.14% a day after the Bank of England cut rates.

"European markets have kicked off the day with a somewhat cautious tone, with markets failing to gain traction on a day that brings the potential for volatility as the deadline runs out for Russia to end their conflict with Ukraine," said Rostro analyst Joshua Mahony.

"For markets, the impending meeting between Trump and Putin over the coming days does provide the basis to expect a more patient approach for the time being, with oil prices falling to a one-month low in a signal that market concerns over a shift away from Russian oil will be minimal."

"Nonetheless, anyone following previous discussions between Putin and Trump will likely remain somewhat sceptical around the possibility of a breakthrough, raising the chance of more oil volatility."

Eyes were on Trump as his deadline for Russia to stop waging war on Ukraine expires on Friday. The president said he would impose secondary tariffs of "about 100%" on Russia's trading partners if Moscow did not end its invasion.

In commodities news, US gold futures contracts hit record highs, soaring above $3500 on tariff fears after a report in the Financial Times citing a letter from US Customs officials stating rules imported gold bars would not be exempt from tariffs.

"The ruling that one kilo and one-hundred-ounce bars would not be exempt from tariffs is a shock move, and the sharp divergence between spot prices and futures demonstrates the wave of surprise pulsing through the market," said Hargreaves Lansdown analyst Susannah Streeter.

"This is a particular blow to Switzerland which is the biggest player in the gold refining market, given a 39% tariff rate on its exports to the US came into effect yesterday."

In equity news, Bechtle shares jumped after the German IT services provider released second-quarter results.

Georgia's TBC Bank slumped despite reporting a rise in second-quarter operating profit.

Munich Re tumbled after the German reinsurer cut its full-year outlook for insurance revenue.

Reporting by Frank Prenesti for Sharecast.com