Market Overview: European stock markets give back gains, with a slight increase in US stock index futures.

European stock markets gave back earlier gains, while US stock index futures rose slightly, as investors assess the latest tariff threats from US President Donald Trump, disappointing economic data, and a plethora of corporate earnings reports. The Stoxx Europe 600 index showed little change after rising 0.4%, as the performance of some major companies in the region was mixed. S&P 500 index futures rose by about 0.3%, with traders waiting for earnings reports from companies like McDonald's and Walt Disney. Tuesday's data showed weakness in the US service sector, as well as persistent price pressures, sparking concerns about the challenges facing Federal Reserve policy. Trump has escalated tariff threats by stating he will impose tariffs on countries buying energy from Russia, and will soon announce tariffs on semiconductor and drug imports. Despite this, strong corporate earnings and bets on interest rate cuts are currently boosting the stock market. Katherine Brooks, research director at XBT, said, "Overall, strong corporate earnings on both sides of the Atlantic are supporting the stock market to a certain extent, easing concerns about the impact of a slowing US economy and President Trump's continued obsession with tariffs on the global economy." The US stock market is approaching record highs, with investors turning back to tech giants and AI-related trades as data suggests economic growth may slow. Paul Skiaonelli, macro trader at Goldman Sachs, said betting against the market momentum reversal "almost seems unreasonable." Mark Haefele, Chief Investment Officer at UBS Wealth Management, stated that any selloff could provide opportunities for stock investors, but they should be prepared for volatility. Haefele said, "While trade uncertainty and overvaluation may pose a slight resistance to the stock market in the short term, investors can consider ways to manage volatility while positioning for long-term returns. Investors who are already allocated to stocks according to strategic benchmarks should consider implementing short-term hedges, while those under-allocated should be prepared to increase exposure in the event of a downturn." US Treasury bonds fell, with the 10-year bond yield rising by 3 basis points to 4.24%, ahead of a 10-year bond auction later on Wednesday. The US dollar index remained stable. In other European news, German factory orders unexpectedly declined for the second consecutive month in June, with the outcome of the EU-US trade agreement still unclear. Former ECB Governing Council member Robert Holzmann stated that the ECB should not further lower borrowing costs. Meanwhile, Swiss President Karin Keller-Sutter arrived in Washington to make a final effort to lower the 39% tariffs imposed by Trump last week, in order to reach an agreement. In commodities, oil prices rose slightly after four consecutive days of decline, as investors wait to see if Donald Trump will impose secondary tariffs on Russian energy buyers to increase pressure on Moscow.