Euro gains as investors cautiously welcome US-EU trade deal
The euro rose against the US dollar, up 0.27 percent at US$1.177. The currency also gained 0.2 percent against both the pound and the Japanese yen.
Trump announced the United States has struck a framework trade deal with the EU that includes a 15 percent tariff on EU goods entering the US and significant EU purchases of US energy and military equipment.
European Commission President Ursula von der Leyen said the deal includes "cars, semiconductors and pharmas."
The deal is similar to parts of the framework agreement the US clinched with Japan last week.
"It's really in line with the Japan deal, and I assume investors will view it positively as they viewed the Japan deal," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.
Optimism over easing trade tensions broadly helped push US stocks to record highs last week and lifted European shares to their highest since early June.
Trump's Apr 2 "Liberation Day" announcement of sweeping global tariffs sent stocks plunging in the immediate aftermath, due to spiking fears about a recession that have since faded.
"I don't think equities in particular needed much of an excuse to rally and now they've got one," said Michael Brown, senior research strategist at Pepperstone in London.
Still, investors have been bracing for increased volatility heading into Aug 1, which the US has set as a deadline for raising levies on a broad swath of trading partners.
"We will need to see how long the sides stick to the deal. From a market perspective, it is reassuring in the sense that having a deal is better than not having a deal," Eric Winograd, chief economist at investment management firm AllianceBernstein, said about the EU agreement.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
9 minutes ago
- Business Times
Citi charges US$595 for ‘Strata Elite' credit card to rival Amex, Chase
[NEW YORK] Citigroup launched a premium credit card designed to rival ones offered by JPMorgan Chase and American Express, the latest entrant in the increasingly crowded market for cards offering high-end perks. The 'Strata Elite' card will feature an annual fee of US$595, a price that the bank says can unlock almost US$1,500 in value if used to its maximum potential. It offers the largest points rewards for hotels, car rentals and attractions booked on Citigroup's travel platform, as well as restaurant dining at peak weekend times. The card also bakes in perks for customers who fly with American Airlines Group, giving four passes per year to the airline's airport lounges and the ability to transfer Citigroup 'ThankYou Points' into reward miles with the airline. That follows an expansion of the firms' existing card partnership in December, when American Airlines chose to make Citigroup the exclusive issuer of all its credit cards. In addition to American Express and JPMorgan, Citigroup will be competing with other banks trying to break into the premium space, including Capital One Financial. The customers they vie for are highly sought after, known for their willingness to pay annual fees, and reliably spending more and prioritising travel and hospitality. 'It's always been highly competitive, competition makes us all better,' Pam Habner, Citigroup's head of US branded cards and lending, said. At US$595, plus US$75 a year for each authorised user, the card is cheaper than JPMorgan's Sapphire Reserve, which Habner helped launch when she worked there in 2016. That card's annual fee will jump to US$795 from US$550, JPMorgan said last month. In addition to the perks rolled out by Citigroup directly, the Strata Elite card will be the first in Mastercard's recently announced World Legend tier of credit cards, meaning it comes with an additional suite of benefits. World Legend cards include access to the Mastercard Collection, which translates into ticket pre-sales and streamlined airport security access, among other rewards. 'We designed benefits that we know our customers can use,' Habner said, adding that the card was designed to give customers rewards for types of spending, rather than handing them coupon-style rewards to use with specific companies. The card offers perks designed for frequent travellers, including hundreds of US dollars worth of credit to spend on Blacklane, a chauffeur service, and on GlobalEntry or TSA PreCheck to get through airport lines faster. BLOOMBERG
Straits Times
39 minutes ago
- Straits Times
Thai, Cambodian leaders set for peace talks nudged by Trump
Earlier on July 27, Cambodia and Thailand each said the other had launched artillery attacks across contested border areas. Thai and Cambodian leaders are set for talks on July 28 to halt the deadliest clash between the neighbors in more than a decade, with the US sending mediators after President Donald Trump used tariffs threats to press for a ceasefire. Thailand's Acting Prime Minister Phumtham Wechayachai and Cambodian Prime Minister Hun Manet are scheduled to meet in Kuala Lumpur at 3pm local time , according to Thai government spokesman Jirayu Houngsub. The gathering will be at the office of Malaysian Prime Minister Anwar Ibrahim, who's facilitating the dialogue in his role as the chair of the Association of South-east Asian Nations (Asean). The first talks since clashes began on July 24 come within 48 hours of Mr Trump saying Thai and Cambodian leaders had agreed to 'quickly work out a ceasefire.' After separate calls with Mr Phumtham and Mr Hun Manet on July 26, Mr Trump had threatened that Washington will not do a trade deal with either country as long as the fighting continued. Secretary of State Marco Rubio said US officials are on the ground in Malaysia . China, the top trading partner for both the South-east Asian nations and a major backer of Phnom Penh, is due to participate in the talks, officials from Cambodia said. 'Both President Trump and I remain engaged with our respective counterparts for each country and are monitoring the situation very closely,' Mr Rubio said in a statement. 'We want this conflict to end as soon as possible.' Mr Trump's tariff threat set off a flurry of diplomatic activities on July 27 with Mr Anwar eventually getting the two sides to agree to meet. Mr Rubio also spoke to the foreign ministers of Thailand and Cambodia and urged them to immediately de-escalate tensions while offering US help in future talks. Speaking to reporters just before meeting with European Commission President Ursula von der Leyen on July 27, Mr Trump acknowledged the phone calls with the two leaders. Top stories Swipe. Select. Stay informed. Singapore Not feasible for S'pore to avoid net‑zero; all options to cut energy emissions on table: Tan See Leng Singapore With regional interest in nuclear energy rising, S'pore must build capabilities too: Tan See Leng Singapore New Mandai North Crematorium, ash-scattering garden to open on Aug 15 Singapore Tanjong Katong Road sinkhole did not happen overnight: Experts Singapore Sewage shaft failure linked to sinkhole; PUB calling safety time-out on similar works islandwide Singapore Science Journals: Lessons from weird fish sold in Singapore's wet markets World US and EU clinch deal with broad 15% tariffs on EU goods to avert trade war Asia Displaced villagers at Thai-Cambodian border hope to go home as leaders set to meet for talks 'I called the prime ministers of each and I said, 'We're not going to make a trade deal unless you settle the war.' A lot of people killed,' Mr Trump said. 'And I think by the time I got off, I think they want to settle now.' With Mr Trump's Aug 1 tariff deadline looming, trade-reliant Thailand wants to avoid antagonising the US president, especially as its officials have been holding talks to lower the steep 36 per cent planned levy on its exports. Mr Trump has claimed credit for helping halt border clashes earlier this year between India and Pakistan by leveraging trade measures, and is now applying similar pressure in South-east Asia. 'When all is done, and Peace is at hand, I look forward to concluding our Trading Agreements with both!,' Mr Trump said on Truth Social after speaking to Thai and Cambodian leaders on July 26. Thailand's trade talks with the US have included offering expanded access for American goods in an effort to narrow a US$46 billion trade surplus with Washington. Neighboring Indonesia, the Philippines, and Vietnam have already secured trade deals with the US in recent weeks. Thailand and Cambodia should not have needed the pressure from Mr Trump, and should have turned to Asean as a natural middle ground to mediate the conflict well before US intervention, said Mr Fuadi Pitsuwan, a lecturer in international relations at Thammasat University in Bangkok. 'In the end, Trump will likely frame the situation as a win: he enforced a ceasefire while securing leverage' to impose punitive tariff rates, he said. Despite the economic stakes, Thailand has taken a firm stance ahead of talks on July 28. Officials say any ceasefire must be tied to bilateral resolution of the dispute, the withdrawal of troops, and a halt to the use of lethal weapons. Cambodia, by contrast, has said it is open to an unconditional cessation of hostilities. The talks are 'intended to listen to all proposals that could contribute to restoring peace,' Mr Houngsub said. 'The Thai government remains committed to defending the nation's sovereignty and territorial integrity. Every square inch of it.' The conflict, which escalated from months of simmering border tension, has killed more than 30 people and displaced over 150,000 civilians on both sides. Thailand has reported 22 fatalities, including eight soldiers, while Cambodia has confirmed 13 deaths, including five military personnel. Heavy artillery fire continued Sunday across their 800km border, with both sides accusing each other of targeting civilians. Thailand has responded by deploying F-16s and Swedish-made Gripen fighter jets to strike Cambodian military positions. Thailand and Cambodia share a history of border disputes, though relations have remained largely stable since a deadly 2011 clash that left dozens dead. The last major flare-up centered on the Preah Vihear temple, a historic flashpoint rooted in colonial-era disagreements. Much of the current dispute stems from maps drawn on differing interpretations of early 20th-century Franco-Siamese treaties, which defined the border between Thailand and Cambodia, then part of French Indochina. BLOOMBERG
Straits Times
an hour ago
- Straits Times
US, China to launch new talks on tariff truce extension, easing path for Trump-Xi meeting
FILE PHOTO: The American and Chinese flags are photographed on the negotiating table, during a bilateral meeting between the United States and China, in Geneva, Switzerland, May 10, 2025. KEYSTONE/EDA/Martial Trezzini/Handout via REUTERS/ File Photo STOCKHOLM - Top U.S. and Chinese economic officials will resume talks in Stockholm on Monday to try to tackle longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce by three months and keeping sharply higher tariffs at bay. China is facing an August 12 deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Without an agreement, global supply chains could face renewed turmoil from U.S. duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. The Stockholm talks come hot on the heels of Trump's biggest trade deal yet with the European Union on Sunday for a 15% tariff on most EU goods exports to the U.S., including autos. The bloc will also buy $750 billion worth of American energy and make $600 billion worth of U.S. investments in coming years. No similar breakthrough is expected in the U.S.-China talks but trade analysts said that another 90-day extension of a tariff and export control truce struck in mid-May was likely. An extension of that length would prevent further escalation and facilitate planning for a potential meeting between Trump and Chinese President Xi Jinping in late October or early November. A U.S. Treasury spokesperson declined comment on a South China Morning Post report quoting unnamed sources as saying the two sides would refrain from introducing new tariffs or other steps that could escalate the trade war for another 90 days. Top stories Swipe. Select. Stay informed. Singapore Not feasible for S'pore to avoid net‑zero; all options to cut energy emissions on table: Tan See Leng Singapore With regional interest in nuclear energy rising, S'pore must build capabilities too: Tan See Leng Singapore New Mandai North Crematorium, ash-scattering garden to open on Aug 15 Singapore Tanjong Katong Road sinkhole did not happen overnight: Experts Singapore Sewage shaft failure linked to sinkhole; PUB calling safety time-out on similar works islandwide Singapore Science Journals: Lessons from weird fish sold in Singapore's wet markets World US and EU clinch deal with broad 15% tariffs on EU goods to avert trade war Asia Displaced villagers at Thai-Cambodian border hope to go home as leaders set to meet for talks Trump's administration is poised to impose new sectoral tariffs that will impact China within weeks, including on semiconductors, pharmaceuticals, ship-to-shore cranes and other products. "We're very close to a deal with China. We really sort of made a deal with China, but we'll see how that goes," Trump told reporters on Sunday before European Commission President Ursula von der Leyen struck their tariff deal. DEEPER ISSUES Previous U.S.-China trade talks in Geneva and London in May and June focused on bringing U.S. and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include U.S. complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Beijing's complaints that U.S. national security export controls on tech goods seek to stunt Chinese growth. "Geneva and London were really just about trying to get the relationship back on track so that they could, at some point, actually negotiate about the issues which animate the disagreement between the countries in the first place," said Scott Kennedy, a China economics expert at the Center for Strategic and International Studies in Washington. "I'd be surprised if there is an early harvest on some of these things but an extension of the ceasefire for another 90 days seems to be the most likely outcome," Kennedy said. U.S. Treasury Secretary Scott Bessent has already flagged a deadline extension and has said he wants China to rebalance its economy away from exports to more domestic consumption -- a decades-long goal for U.S. policymakers. Analysts say the U.S.-China negotiations are far more complex than those with other Asian countries and will require more time. China's grip on the global market for rare earth minerals and magnets, used in everything from military hardware to car windshield wiper motors, has proved to be an effective leverage point on U.S. industries. TRUMP-XI MEETING? In the background of the talks is speculation about a possible meeting between Trump and Xi in late October. Trump has said he will decide soon on a landmark trip to China, and a new flare-up of tariffs and export controls would likely derail planning. Sun Chenghao, a fellow at Tsinghua University's Center for International Security and Strategy in Beijing, said that a Trump-Xi summit would be an opportunity for the U.S. to lower the 20% tariffs on Chinese goods related to fentanyl. In exchange, he said the Chinese side could make good on its 2020 pledge to increase purchases of U.S. farm products and other goods. "The future prospect of the heads of state summit is very beneficial to the negotiations because everyone wants to reach an agreement or pave the way in advance," Sun said. Still, China will likely request a reduction of multi-layered U.S. tariffs totaling 55% on most goods and further easing of U.S. high-tech export controls, analysts said. Beijing has argued that such purchases would help reduce the U.S. trade deficit with China, which reached $295.5 billion in 2024. REUTERS
