Most markets rise, euro boosted after EU strikes US trade deal
Global stock markets rose and the euro strengthened on Monday following the announcement of a landmark trade agreement between the United States and the European Union, easing fears of a damaging transatlantic trade war.
The deal, revealed by Donald Trump and European Commission President Ursula von der Leyen at Trump’s golf resort in Scotland, establishes a baseline 15% tariff on EU exports to the US, covering key sectors including automobiles, pharmaceuticals, and semiconductors. In return, the EU pledged to purchase $750 billion in US energy and invest an additional $600 billion in related sectors.
Trump hailed the agreement as “probably the biggest deal ever reached in any capacity,” while von der Leyen emphasized the deal’s importance in providing “stability and predictability” for transatlantic business.
The announcement boosted investor sentiment, pushing the euro up to $1.1779 and lifting global equities. Markets in Hong Kong, Shanghai, Sydney, Wellington, Taipei, and Jakarta all posted gains. European and US futures also rose, building on Wall Street’s record-setting performance, with the S&P 500 and Nasdaq reaching new highs. Tokyo declined for a second straight day after earlier gains linked to a separate US-Japan deal.
Chris Weston of Pepperstone called the US-EU deal “market-friendly,” noting it added upward momentum to the euro and European equities. The agreement follows several recent US trade moves, including a thaw with Japan and an upcoming new round of talks with China.
US Treasury Secretary Scott Bessent will lead negotiations with China’s Vice Premier He Lifeng in Stockholm this week. A 90-day truce on US-China tariffs, implemented in May after talks in Geneva, is due to expire August 12. Recent tariff rates have been temporarily lowered by both sides, raising hopes for progress.
Investors are also watching for major economic data and central bank decisions this week, including US GDP and jobs figures, and corporate earnings from tech giants Amazon, Apple, Meta, and Microsoft. The Federal Reserve is expected to hold interest rates steady, while the Bank of Japan is also forecast to maintain its current policy.
Oil prices rose slightly, with Brent crude reaching $68.80 per barrel, as markets remained broadly upbeat amid easing trade tensions.
