Markets rise as EU-US trade deal boosts euro and global stocks
The deal, announced by former US President Donald Trump and European Commission President Ursula von der Leyen, has injected optimism into global markets.
The agreement includes a baseline 15 percent tariff on EU exports to the US, covering key sectors such as automobiles, pharmaceuticals, and semiconductors.
Trump described the deal as 'probably the biggest ever reached in any capacity,' while von der Leyen emphasised its role in providing stability and predictability for businesses on both sides of the Atlantic.
Brussels also committed to purchasing $750 billion worth of US energy and making an additional $600 billion in investments.
The news pushed the euro to $1.1779, up from $1.1749 at Friday's close.
Asian markets mostly advanced, with Hong Kong leading gains at around one percent.
Shanghai, Sydney, Seoul, Wellington, Taipei, and Jakarta also rose, while Tokyo dipped for a second day following last week's rally. European and US futures pointed to further gains.
Analysts noted that the trade developments, including progress in US-China negotiations, have eased market concerns.
'The news flow from both the extension with China and the agreement with the EU is clearly market-friendly,' said Chris Weston of Pepperstone.
Investors are now focused on upcoming trade talks between US and Chinese officials in Stockholm, as well as key earnings reports from tech giants like Amazon, Apple, and Microsoft.
The Federal Reserve and Bank of Japan are expected to maintain steady interest rates, though market watchers will scrutinise their outlooks amid shifting trade dynamics. - AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
43 minutes ago
- The Star
McDonald's China plans 10,000 outlets
McDonald's China has committed to local execution across management, operations, and innovation. — China Daily BEIJING: McDonald's China's plan to open 1,000 new stores annually and reach as many as 10,000 locations by 2028 is on track, boosted by innovation and localisation, according to its top executive. The food service chain unveiled a report recently to mark the eighth anniversary of its transition to a developmental licensee model under the 'jin gong men' (golden arches) banner. McDonald's China was acquired by a consortium led by CITIC Capital in 2017. The report coincides with the company's rapid expansion, with more than 7,100 outlets across 280 cities – more than triple the number in 2017 – and over 1.3 billion annual customer visits. Phyllis Cheung, CEO of McDonald's China, said: 'The 'jin gong men' model – a global brand empowered by local ownership and operations – has enabled us to respond faster to market dynamics, drive innovation, and scale impact across food, sustainability, talent, and community.' McDonald's China has committed to local execution across management, operations, and innovation. Cheung said the fully localised management team allows the company to stay 'closer to customers' and move 'faster than ever', making decisions independently and feeding successful China-born innovations including its spicy menu series. — China Daily/ANN
Borneo Post
an hour ago
- Borneo Post
Crayfish make a splash in central Chinese city
Workers sort out crayfish at the China Crayfish Trading Center in Qianjiang, central China's Hubei Province on July 8, 2025. – Xinhua photo WUHAN (Aug 7): At 3am each morning, the only sound Ding Yuankai can hear is the gentle splash of oars slicing through a pond in Qianjiang, a city in central China's Hubei Province. With a flashlight strapped to his wrist and clad in waterproof overalls, Ding sets off in his small boat to begin his daily routine. One by one, he hauls up cages wriggling with red, armored crustaceans destined for dinner tables across the country. By the time he finishes checking all 60 mu (4 hectares) of ponds, the sky begins to pale. On the shore, seafood buyers are already waiting. 'When it gets hot, crayfish burrow into the mud to avoid the sun, so the catch drops,' Ding said. 'But it doesn't matter. Whatever I catch sells out. Qianjiang crayfish have a name. There's never a shortage of demand.' This year marks his ninth season in the business. Last year, his profits topped 5,000 yuan (about US$701) per mu. And with feed costs down and yields rising, he expects this year will be even better. In Qianjiang, this optimism runs deep. Every summer, the little crustaceans become a big business and a way of life. Much of Ding's morning haul will end up at the China Crayfish Trading Center on the city's outskirts. By 5am, the facility is abuzz. Workers sort, weigh and pack live crayfish for same-day shipment to restaurants and markets nationwide. Seafood vendor Wei Xiaotao monitors real-time prices on his phone through a digital platform that tracks supply and demand across over 30 production bases and major consumer cities. 'Farmers and traders can adjust their harvesting times and volumes based on price trends,' Wei said. 'It helps us better manage risks.' An aerial drone photo taken on Feb 28, 2024 shows farmers harvesting crayfish at a crayfish-rice integrated farming demonstration base in Qianjiang, central China's Hubei Province. – Xinhua photo By the time he spoke to Xinhua three hours after trading began, he had already sold out of crayfish – more than 500 kilograms. Some of Qianjiang's crayfish skip the fresh market and head straight for processing. At local factories, they're peeled, fried, seasoned and packaged, destined for shelves in Europe and the United States. Others are refined into high-value ingredients such as chitosan and chitin, which are used in pharmaceuticals, food and cosmetics, extending the value chain further. Qianjiang is now home to 48 crayfish processing enterprises, with a combined annual handling capacity of 800,000 tonnes. Qianjiang City is located on the Jianghan Plain, a major producer of rice, cotton, fish and shrimp. With fertile land and a large network of rivers and lakes, the plain is an ideal habitat for crayfish. The species is native to North America and was introduced to east China's Jiangsu Province by a Japanese merchant, appearing in the plain in the 1980s. Locals found the shellfish tasty and soon turned them into big business. Today, Qianjiang boasts a crayfish farming area of 947,000 mu. In 2024, the city sold more than 200,000 tonnes of live crayfish, generating a transaction value of over 10 billion yuan. In the first half of 2025, it recorded a trade of 177,000 tonnes, and the full-year volume is expected to reach a record high. To sustain growth, Qianjiang is pushing for technological innovation and year-round supply. In 2023, the Hubei provincial government launched a 10-point action plan to promote the high-quality development of the crayfish sector. Measures include those related to improving breeding systems, forming expert panels and developing new varieties. One major breakthrough came in December 2024, when Qianjiang hosted its first winter harvest ceremony, marking a milestone in off-season, large-scale crayfish marketing. 'The stable supply of crayfish during the winter and spring has improved farmers' ability to withstand market risks and increased their overall income,' said Guan Caizhang, who manages a local crayfish-rice integrated farming demonstration base. Zhang Yun, director of Qianjiang's crayfish industry promotion center, said that crayfish remain a pillar industry. 'We will continue to scale up training, accelerate selective breeding, and expand year-round farming models to drive further development,' Zhang said. – Xinhua
The Star
an hour ago
- The Star
Cautious market outlook for Hartalega
CIMB Research said near-term catalysts remains limited as tariff-related uncertainties and expansion of Chinese players' overseas capacity could further weigh on the industry. PETALING JAYA: The market remains cautious on the outlook for glovemaker Hartalega Holdings Bhd despite efforts on cost optimisation and the gradual recovery in demand as inventories from restocking diminishes. The company released its first quarter ended June 30, 2025 of financial year 2026 (FY26) results on Tuesday that were below market expectations due to lower demand and weaker average selling prices (ASPs). While the company told analysts at a briefing that it expects gradual recovery in FY26, observers have largely maintained a cautious stance due to oversupply from Chinese glovemakers leading to competitive ASPs and a looming RM101mil tax issue stemming from additional assessment for the years 2017 to 2022. CIMB Research, which maintained a 'hold' rating on the stock with a lower target price (TP) of RM1.45 from RM2.30, said near-term catalysts remains limited as tariff-related uncertainties and expansion of Chinese players' overseas capacity could further weigh on the industry. 'However, we see limited downside to the stock at current levels, with price-to-book value valuations now back to levels last seen during the glove supply glut in 2023, when industry-wide losses were prevalent,' it added. MBSB Research has kept its 'neutral' recommendation on the stock with a TP of RM1.24 from RM2.45. The research house pointed out to the thinning profit margins due to continued pricing pressure from Chinese glovemakers in the non-US markets. 'Note that the blended ASP contracted by 5% year-on-year. 'Given the pressure on both revenue and cost, we observed that the profit margin contracted to 2.4% from 6.8% a year ago,' it said, adding that the tough operating environment has translated to downward earnings revision of more than 50% for FY26 and FY27. Phillip Capital has also maintained a 'hold' rating with a TP of RM1.34 from RM1.64, reflecting lower ASP assumptions of US$19 to US$21 per 1,000 pieces from US$20 to US$22 as well as reduced sales volume in line with the company's latest guidance of six billion to six-and-a-half billion pieces. Maybank Investment Bank Research has maintained a 'sell' call with a TP of RM1.35 from RM1.41. The reserach house noted that that the company would continue to focus on its core nitrile glove segment and cost optimisation efforts, including workforce redeployment together with investing RM200mil to RM300mil over the next 18 to 24 months in automation and energy-saving upgrades. UOB Kay Hian Research expects the challenging outlook to continue pressuring sales and while the company expects US demand to recover, intensifying Chinese competition and oversupply dynamics continue to impact earnings. It has maintained a 'hold' call with a TP of RM1.40 from RM1.55.
