European stocks rallied for a second consecutive session on Thursday, supported by gains across most major sectors, as optimism grew that US tariffs will remain below previously threatened levels. The STOXX 50 advanced 0.90% to 5 437, while the STOXX 600 rose 0.50% to 553. In Frankfurt, the DAX climbed 0.80% to 24 377.5 – its highest since 10 July2025  – extending its winning streak to a second day, with sentiment lifted by encouraging trade developments and cautious optimism ahead of the forthcoming Trump–Putin summit, which is expected to explore potential avenues for resolving the conflict in Ukraine. The European Commission indicated it is close to finalising parts of its trade agreements with the United States, which would see tariffs on most goods capped at 15% – well below the steeper rates floated by US President Donald Trump.

In corporate sectors, Allianz rose more than 2%, tracking strong gains among insurers and reinsurers after Swiss Re delivered better-than-expected first-half results. Banks extended their rally, with BBVA and Nordea advancing 2% and 2.50%, respectively. Industrials were also firmer, as Airbus and Schneider Electric each added around 2%, demonstrating resilience despite a contraction in Eurozone industrial output. By contrast, Adyen and ThyssenKrupp both shed about 5% following weaker-than-anticipated results. 

The FTSE 100, however, was largely flat on Thursday, pausing after three consecutive sessions of gains and underperforming its European peers, weighed down by several heavyweight stocks trading ex-dividend. Among them were HSBC (-0.30%), Shell (-1.50%), BP (-0.90%), Unilever (-1.40%) and GSK (-1.60%). Mining shares also came under pressure, with Rio Tinto sliding 4% as iron ore prices eased ahead of Chinese steel production data.

US equities retreated on Thursday, with the S&P 500 and Nasdaq each down 0.30% and the Dow Jones shedding around 180 points. The US dollar index hovered near 97.9 on Thursday after stronger-than-expected inflation figures dampened the likelihood of a Federal Reserve rate cut in September. Producer prices rose 0.90% in July – the largest monthly increase in three years – fuelled by higher service costs, pushing the annual Producer Price Index (PPI) to 3.30%. Core PPI, which excludes food, energy and trade services, climbed 0.60% from June and 2.80% year-on-year.

On the labour front, initial jobless claims fell by 3 000 to 224 000, signalling that employers remain hesitant to lay off workers despite a slowdown in hiring. Continuing claims were steady at 1.95 million, close to a three-year high, highlighting ongoing difficulties for jobseekers. 

Asian markets ended mixed, as investors paused after recent gains despite a positive lead from Wall Street. Japan’s Nikkei 225 slipped by 1.45%% as traders took profits following a multi-session rally, while Hong Kong’s Hang Seng fell roughly 0.40% to close at 25 511.86. China’s Shanghai Composite dropped by 0.36%%. 

South Africa’s equity markets ended lower on Thursday, with the FTSE/JSE All Share Index (ALSI) slipping 0.28% to 101 993.04, down 285.38 points, while the Top 40 Index dropped 0.30% to close at 94 566.19. In contrast, the Financial 15 Index gained 0.45% and the South African Property Index (SAPI) rose 0.41%, reflecting strength in those sectors. Meanwhile, the rand weakened slightly against the US dollar, trading at R17.61 at 19h18 SAST.

Commodity markets showed mixed movements. Gold fell slightly by 0.53% to $3 336.62 per ounce, while silver also dipped by 1.24% to $38.02 per ounce. In contrast, platinum increased by 1.52% and Brent crude oil gained  1.80%, closing at $66.81 per barrel.