European markets rise despite debt and services PMI concerns

• European markets rise despite debt and services PMI concerns.
• Alphabet shares jump after court ruling.
• Trump tariffs and JOLT job openings data in view.

European markets have opened on a positive footing today, showing resilience in the face of lingering concerns over rising borrowing costs. Bond yields remain elevated, but equities are on the rise despite the weaker services PMI surveys released out of Spain, Italy, and Germany. Political uncertainty also hangs in the background, with France heading to the polls next week in a pivotal vote that could reshape the country’s policy landscape. For now, today’s rally appears to be more of a short-term rebound after a two-week period of declines, with traders still concerned that the September curse looks like it might strike once again.

Alphabet shares are in focus, rising 5.8% in pre-market after a court ruling approved the company’s ability to maintain its Google Chrome browser as part of its wider ecosystem. The decision is seen as a significant win for the tech giant in an era of heightened antitrust scrutiny. Investors are watching closely for broader implications across the tech sector, where regulatory risks have been an ongoing concern. Notably, with Trump having pushed back against any country that has implemented a digital sales tax, this ruling helps provide confidence that companies in the sector face a supportive environment under Trump.

In the US, attention is split between politics and economics. The appeals court ruling that Trump’s reciprocal tariffs are illegal throws fresh uncertainty into the mix, although Scott Bessant has already noted that they are drawing up plans to implement the tariffs in a new setting should the court ultimately force their removal. On the data front, today brings the JOLTS job openings release, which will be closely watched for signs of cooling in the labour market. The expected decline in job openings kicks off a period that markets believe will also signal weakness across the ADP, and headline payrolls figures. Later in the session, the Federal Reserve’s Beige Book also will provide policymakers’ regional economic assessment ahead of the September meeting. Particular attention will be paid to any clues around the price pressures being felt by businesses in response to Trumps tariffs, with the lack of an inflation surge thus far allowing for a relatively dovish stance ahead of the Fed meeting.