US stock markets were mixed on Thursday as investors weighed domestic trade policy developments against major tech earnings. The S&P 500 and Nasdaq 100 inched slightly higher, enough to retest record levels, while the Dow Jones Industrial Average dropped by more than 300 points. Alphabet rose by 4% after the tech giant reported better-than-expected earnings for the June quarter and announced plans to increase AI-related spending by $10 billion this year.

Meanwhile, reports suggested that the EU and the US were nearing an agreement on tariffs set at 15%, lower than the previously threatened 30%. In addition, President Trump stated that tariffs on other countries would range between 15% and 50% - exceeding the Liberation Day threshold that had previously triggered a sell-off in US assets.

In South Africa, the main stock market index, the SAALL, slipped to 99 971 points on Thursday, down 0.21% from the previous session.

The UK’s FTSE 100 gained 0.90% to close at a record 9 138, outperforming European markets amid renewed optimism around tariff negotiations. While much of the market’s attention remained on EU-US trade talks, the UK and India signed a long-anticipated trade agreement covering tariff reductions on goods such as cars and alcohol. Signed near London by Trade Secretary Jonathan Reynolds and Indian counterpart Piyush Goyal, the deal is expected to contribute an estimated £4.8 billion to the UK economy.

European markets also closed higher as investors digested trade developments and monetary policy outlooks across the region. The Eurozone’s STOXX 50 rose by 0.30% to 5 359, while the broader STOXX 600 also gained 0.30% to end at 552. The European Central Bank held interest rates steady and confirmed that disinflation is progressing in line with its earlier projections.

In Asia, Japan’s Nikkei 225 advanced 1.59% to close at 41 826, while the broader Topix Index jumped 1.75% to 2 978, with the latter reaching a new all-time high. The continued momentum followed a recently concluded trade deal between the US and Japan, which boosted investor sentiment. Meanwhile, Chinese mainland equities also advanced, as renewed optimism over US-China trade negotiations lifted the Shanghai Composite by 0.65% to 3 606 and the Shenzhen Component by 1.21% to 11 193 - both hitting multi-month highs.

In commodities, WTI crude oil futures rebounded to approach $66 per barrel, breaking a four-day losing streak as market focus returned to trade talks. Gold prices, on the other hand, slipped below $3 380 per ounce, extending losses from the previous session. The metal’s safe-haven appeal continued to weaken amid growing confidence in global trade progress.