Economy

The AEX index opened lower on Friday as investors paused to catch their breath following a significant two-day rally. Market sentiment remains cautious as the world awaits concrete details from the summit in Beijing between US President Donald Trump and Chinese leader Xi Jinping. Despite Trump’s optimistic talk of "fantastic trade deals" and potential cooperation regarding oil and the Strait of Hormuz, the lack of specific particulars—coupled with rising tensions over Iran—led the Amsterdam benchmark to dip 0.9 per cent to 1,012.60 points in early trading.

Food manufacturers warn that rising costs could push supermarket prices higher in the coming months. They are calling on the Dutch government to limit new taxes and support supply chain stability.

ASML and major Dutch trade unions have reached an agreement on a social plan to support employees during the company’s current transformation. The plan focuses on preventing forced redundancies through internal redeployment, generous severance pay, and extended employment guarantees.

SODA reports a sharp rise in motorists driving away without paying for fuel, linking the trend to higher prices and financial pressure. The organisation says deliberate drive‑offs now form the majority of cases. Fuel prices remain near record levels, although motorists often pay less away from the motorway.

Demand for cheaper second-hand electric cars is increasing sharply in Europe. This is the result of the sharp price increases at the pump caused by the war in the Middle East. Nevertheless, battery life tempers the used-car demand.

US President Donald Trump has issued a 4 July ultimatum to the European Union, threatening to significantly hike import tariffs if a pending trade deal is not finalised by America's 250th anniversary. Following a discussion with European Commission President Ursula von der Leyen, Trump expressed frustration over delays in implementing the agreement reached last summer, which includes the removal of duties on US goods like lobster and industrial products. While the EU maintains that it is in the final stages of negotiations, the President has warned that failure to comply will result in tariffs on European imports, including cars and lorries, immediately soaring to much higher levels.

The AEX index fell further on Friday morning, dropping 0.6 per cent to 1,013.32 points as a fragile ceasefire between the United States and Iran appeared to buckle. This latest decline follows a 1.2 per cent slump on Thursday, marking a sharp retreat for Amsterdam’s blue-chip stocks after they reached a new closing record just two days ago. Market sentiment turned defensive as investors weighed conflicting reports from Washington and Tehran: while the US military confirmed retaliatory strikes and Iran threatened to respond "vigorously and without hesitation," President Donald Trump maintained the truce was still in effect despite Iranian accusations of ceasefire violations in civilian areas.

Economic inequality between Dutch households is increasing, and the tax system may play a role, the CPB says. High earners often pay less tax by using private limited companies, while wealth gaps continue to grow. The agency warns that equal opportunities could come under pressure if the trend persists.