📢 Headline Alert: Stay informed with curated news directly from top media sources.
Stock markets gained along with the Euro on Monday after the recent European Union and United States deal to resolve a potential trade war that could have caused severe damage.US President Donald Trump on Sunday said that both powers have ‘reached a deal’ on trade and called it a ‘good deal’. He announced that a 15 per cent baseline tariff would be imposed on EU exports to the US.
Global markets react positively to the EU-US deal
- The euro rose to $1.1779, up from $1.1749 on Friday after the deal news.
- Hong Kong led the rally, climbing around 1%.
- Other rising markets included: Shanghai, Sydney, Seoul, Wellington, Taipei, Jakarta, and European and US futures.
- Tokyo fell for the second straight day, after a 5% surge earlier on Japan’s US deal.
- Singapore and Seoul posted minor losses.
- The broad rally followed record highs on Wall Street’s S&P 500 and Nasdaq.
‘Good deal for everybody’
EU Commission President Ursula von der Leyen and Donald Trump reached a trade deal on Sunday. Meanwhile a new round of China-US talks led by US treasury secretary Scott Bessent and China’s vice premier He Lifeng in Stockholm is planned.Trump and Der Leyen announced at his golf resort in Scotland that a 15 per cent baseline tariff would be imposed on EU exports to the US.“We’ve reached a deal. It’s a good deal for everybody. This is probably the biggest deal ever reached in any capacity,” Trump said.“It’s a good deal,” von der Leyen further hailed the deal. “It will bring stability. It will bring predictability. That’s very important for our businesses on both sides of the Atlantic,” she added.The US President also said that the levies would apply across the board, including to Europe’s key sectors such as automobiles, pharmaceuticals, and semiconductors.
‘Market-friendly’ agreement
Thames Water CEO Chris Weston acknowledged the rise in stock markets following the landmark deal.“The news flow from both the extension with China and the agreement with the EU is clearly market-friendly, and should put further upside potential into the euro… and should also put renewed upside into EU equities,” Weston said at Pepperstone according to an AFP report.Traders are getting ready for a busy week, with investors watching for important economic data, central bank meetings, and results from big global companies.Both countries had placed tariffs on each other’s goods in April, reaching over 100% in some cases. The US has now lowered its duties to 30%, while China has cut its tariffs to 10%.The 90-day truce, agreed during talks in Geneva in May, is set to end on August 12.
Big week for tech giants
Earnings from major tech giants like Amazon, Apple, Meta, and Microsoft are due this week. Investors are also watching for key US economic data, including growth and job figures.The Federal Reserve is expected to keep interest rates unchanged at its latest policy meeting. However, markets are eager to hear how officials view the rest of the year, especially after Trump’s new tariffs. The Bank of Japan is also likely to avoid any major changes to borrowing costs.
Source: Times of India
📝 All news content is syndicated with source attribution for transparency.
