European stocks closed mostly higher on Wednesday on strong corporate earnings and expectations of a Fed interest rate cut in September. However, caution prevailed due to Trump’s tariff threats on chips and pharmaceuticals. The UK market saw Hiscox surge 10% and Coca-Cola Europacific Partners tank over 9%. In Germany, Vonovia gained 3.5% while Bayer closed nearly 10% down. The UK construction sector saw a sharp downturn in July, with the PMI falling to 44.3. Germany’s factory orders also declined unexpectedly in June by 1% month-on-month. Eurozone retail sales increased 0.3% month-over-month in June.

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