European futures gain 0.8% catching up to US rally amid trade deadline focus

Eurostoxx futures advanced 0.8% in early European trading, with German DAX futures up 0.7% and UK FTSE futures adding 0.1%, as markets catch up to yesterday's late US rally following the Trump-Powell drama. European indices had closed lower yesterday, missing the recovery in US stocks that came after initial volatility surrounding reports of tensions between President Trump and Fed Chair Powell. The positive sentiment in European futures reflects stabilization in global risk appetite, with US futures also maintaining steady levels in Asian trading. Market attention is increasingly focused on the approaching August 1 deadline for US-EU trade negotiations, with investors hoping for a provisional trade agreement that could ease transatlantic tensions. Any breakthrough in trade talks could provide additional support for European equities and the euro, while failure to reach an agreement might renew pressure on risk assets and support safe-haven flows into the US dollar.