FTSE 100, DAX Forecast: Two trades to watch

FTSE rises to record highs, boosted by miners

The FTSE 100 has risen to a record high, boosted by the mining sector, as investors react to Trump's latest tariff announcement.

Anglo American has risen over 4%, whilst Rio Tinto and Glencore are trading over 3.5% higher following confirmation from President Trump that 50% tariffs will be applied to copper from August 1st.

The latest announcement on Truth Social has created volatility in the copper market, with the US copper price rising to record highs, as demand surges and importers rush to bring in copper before the start of the tariffs. The global copper prices on the London Metals Exchange have fallen, widening the gap between the two prices, suggesting that the market considers the longer-term impacts to be negative on copper prices. JP Morgan has supported this view, saying they expect copper prices to come under pressure as demand is expected to be met by two dislocated inventories.

There's still little detail on how these tariffs will be implemented, but they would likely be considered severely inflationary. All of this increases the chances of more volatile trading across the commodities market in the coming days and for miners on the FTSE.

The UK economic calendar is quiet; attention will remain focused on Trump's trade tariffs.

Trump has also threatened to impose high tariffs on the pharmaceutical industry, with potential threats of 200% tariffs on farm imports in the future, although there have been no concrete announcements.

FTSE 100 forecast – technical analysis

The FTSE 100 broke out of its rising channel, pushing above 8910, the June high, and pushing to fresh record levels of 8950. Buyers will look to extend gains towards 9000 as the next logical target. The RSI is deeply oversold, so buyers should be cautious.

Support is at 8910. A break below here brings 8875, the upper band of the rising channel, into play, followed by 8850.  A Break below here creates a lower low.

DAX hits record highs as investors await EU-US trade deal news

The DAX, along with its European peers, is rising on Thursday as investors await a potential trade deal between the US and the EU and ahead of the start of the earnings season next week.

EU and US negotiators have moved closer to a deal. According to EU trade chief Sefcovic, good progress has been made on a framework agreement with Washington, with a deal potentially being announced within days. Negotiators are discussing measures to help protect the EU auto industry, including tariff cuts and import quotas. Despite uncertainty, European shares are performing well, with banks reaching multi-year highs.

Trump's trade tariffs are in focus after the president announced a 50% tariff on copper imports and a 50% duty on goods from Brazil, both effective as of August 1st. He also issued seven new letters to training partners, adding to 14 issued earlier in the week, stating that new trading tariffs.

It appears that investors are becoming desensitized to the latest developments. U.S. stocks rose towards record levels, and Nvidia briefly passed the $4 trillion market capitalization level, adding to the upbeat mood.

Moreover, tech stocks focused on after TSMC, the world's largest contract chipmaker, posted Q2 revenue above forecasts as demand for its products surged amid growing interest in advanced AI applications.

DAX forecast – technical analysis

The DAX has extended its recovery from 23k, rising above 24,900, the previous all-time high, to reach fresh record levels at 24,650.

Buyers will look to extend the bullish trend towards 25,000.

Immediate support is at 24,490. Below here 24,000 comes into play. A break below 23k creates a lower low.