Investors cautiously welcome US-Europe trade deal
U.S. President Donald Trump announced the United States has struck a framework trade deal with Europe.
The deal includes a 15% tariff on EU goods entering the U.S. and significant EU purchases of U.S. energy and military equipment.
"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 Lance Investments in New Vernon, New Jersey.
Optimism over easing trade tensions broadly helped push U.S. stocks to record highs last week and lifted European shares to their highest since early June. Trump's April 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.
Hopes for a deal with Europe were reinforced by Trump striking a trade agreement with Japan on July 23.
Still, investors have been bracing for increased volatility heading into August 1, which the U.S. has set as a deadline for raising levies on a broad swath of trading partners.
"The two obvious reactions that you would expect are upside in the euro and upside in equity futures. 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.
The announcement came after European Commission President Ursula von der Leyen traveled to Scotland for talks with Trump to push a hard-fought deal over the line.
In the agreement with Japan, the country's auto sector, which accounts for more than a quarter of its U.S. exports, will see existing tariffs cut to 15% from levies totaling 27.5% previously.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
15 minutes ago
- The Independent
Swinney to press Trump on Scotch whisky tariffs exemption
Scotland's First Minister has vowed to press President Donald Trump to exempt Scotch whisky from US trade tariffs. John Swinney said the 'uniqueness' of whisky made in Scotland justified the exemption from the 10% tariff applied on UK exports into the US. The First Minister, who is due to hold talks with Mr Trump during his ongoing visit to Scotland, said the tariffs were currently costing the local whisky industry £4 million a week. 'Tariffs are very important for the Scottish economy and obviously scotch whisky is a unique product,' he told BBC Breakfast. 'It can only be produced in Scotland. It's not a product that can be produced in any other part of the world. So there's a uniqueness about that, which I think means there is a case for it to be taken out of the tariffs arrangement that is now in place. 'Obviously the trade deal with the United States provides a degree of stability for economic connections with the United States, but the application of tariffs is increasing the costs for the Scotch whisky industry. 'So one of my objectives will be to make the case to President Trump that Scotch whisky should be exempted from those tariffs. 'It's a product that is uniquely produced in Scotland, and it's a product that is much welcomed and supported within the United States. And I think there's a really good case for exempting Scotch whisky, and this is an opportunity that I have to put that case to President Trump on behalf of the Scotch whisky industry, which is a significant part of the Scottish economy. 'And the tariffs just now are costing the industry about £4 million each week, so it's a very significant burden on the industry. It would help growth and development within the Scottish economy if we could secure that deal. And, obviously, I'll be using every opportunity I have to try to put that across to President Trump.' Mr Trump's five-day visit to Scotland is largely a private one that has seen the president play golf at his course at Turnberry in Ayrshire ahead of opening a new course at his property in Aberdeenshire on Tuesday. Mr Swinney said the final cost of the policing the visit has yet to be worked out. 'Obviously, we're working very closely with Police Scotland and the Scottish Police Authority about the arrangements for this visit,' he said. 'The security arrangements have gone well since President Trump arrived on Friday, and that's as it should be, because we've got an obligation to make sure that when we have major international visitors, when they come to Scotland, that they are protected and able to go about their activities. Pressed to reveal the bill, Mr Swinney added: 'All of that will be worked out and we'll address that with Police Scotland and the Scottish Police Authority, and we're talking to the United Kingdom government about these questions, but it's important that we have a secure policing operation. 'It's also important that members of the public who wish to express their point of view, who want to protest about the visit or about other issues, are able to go about their exercise of their democratic right to protest. That's exactly what they've been able to do since Friday, and that's the way it should be.'
Auto Express
15 minutes ago
- Auto Express
Citroen's new SUV is £7k cheaper than a VW Tiguan
Citroen has announced pricing for its new C5 Aircross with the flagship SUV set to start from just over £30,000. The C5 Aircross will continue Citroen's 'multi-energy' platform strategy - meaning it'll be offered with a petrol hybrid and all-electric power. The Citroen C5 Aircross comes in the three trim levels you'd find across in Citroen's model range. With the 'Hybrid 145' powertrain, the C5 Aircross starts in You! guise from £30,495, before going up to £33,135 for the mid-range 'Plus' and £35,775 for the top-spec 'Max'. Choose the all-electric version of any of those trim levels and you'll pay an extra £3,570. Citroen says orders are open now with the new car arriving in showrooms from October, although if you can't wait until then you can buy a used Citroen C5 Aircross through our Find a Car service. Advertisement - Article continues below Inside the C5 Aircross you'll find a 10-inch driver's display and a 13-inch 'Waterfall' portrait-oriented touchscreen in the middle of the dash - no matter which trim you go for. The mid-spec Plus gets a 180-degree camera and 19-inch alloy wheels instead of the You! 18-inch rims, while top-spec Max adds adaptive cruise control, dual-zone air-conditioning, matrix LED headlights with adaptive high beams and a 360-degree exterior cameraOnly the top-spec e-C5 Aircross gets a heat pump as standard. The sole petrol engine is the 143bhp 1.2-litre hybrid, while the e-C5 Aicross comes with a 211bhp electric motor and a 73kWh battery that provides 323 miles of range. A 97kWh battery alternative will arrive soon which will increase power to 228bhp and a range of 423 miles, and a plug-in hybrid will also come at a later date. Our dealer network has 1,000s of great value new cars in stock and available now right across the UK. Find your new car… Find a car with the experts Hyundai slashes prices across its entire EV range Hyundai slashes prices across its entire EV range Korean brand acts swiftly to cut prices on all its electric cars, amid confusion over Government's grant scheme Congestion Charge EV exemption removal to generate over £75million per year Congestion Charge EV exemption removal to generate over £75million per year TfL is planning to raise the Congestion Charge to £18, and EV drivers will have to pay too Dacia's baby EV due in 12 months with a tiny £15k price tag Dacia's baby EV due in 12 months with a tiny £15k price tag Dacia's new model will be developed in double-quick time, and it'll be built in Europe to avoid China tariffs
STV News
15 minutes ago
- STV News
‘More to do' on US steel tariffs than Trump and PM can resolve, minister signals
There is unlikely to be a 'resolution' in talks over US tariffs on UK steel when Donald Trump and Sir Keir Starmer meet on Monday, Jonathan Reynolds indicated, saying there was 'more to do' in negotiations. The Prime Minister will attempt to hammer out a deal on steel import levies when he meets the US president at Turnberry, Trump's Ayrshire golf course. Starmer and Scotland's First Minister John Swinney also plan to urge the US president to apply pressure on Israel to allow more humanitarian aid into Gaza, where the population is facing starvation. When the UK and US signed a trade deal in June, it reduced tariffs on car and aerospace imports to the US. But agreement on a similar arrangement for Britain's steel imports was not reached, leaving tariffs on steel at 25%. American concerns over steel products made elsewhere in the world, then finished in the UK, are said to be among the sticking points. Starmer is expected to spend most of the day with President Trump on Monday, when he will have a chance to press the president on a steel deal. But Business Secretary Reynolds suggested it may take more than a meeting between the two leaders to resolve the matter, telling BBC Breakfast: 'We were very happy to announce the breakthrough that we had a few months ago in relation to sectors like automotive, aerospace, which are really important to the UK economy. 'But we always said it was job saved, but it wasn't job done. There's more to do. 'The negotiations have been going on on a daily basis since then. There's a few issues to push a little bit further today. 'We won't perhaps have anything to announce a resolution of those talks, but there's some sectors that we still need to resolve, particularly around steel and aluminium, and there's the wider conversation about what the US calls its reciprocal tariffs.' PA Media Business Secretary Jonathan Reynolds has signalled there is 'more to do' on steel tariff talks with the US. (Jordan Pettitt/PA) It comes after Trump announced he had agreed 'the biggest deal ever made' between the US and the European Union after meeting Ursula von der Leyen for high-stakes talks at Turnberry on Sunday. After a day playing golf, the US leader met the president of the EU Commission to discuss the broad terms of an agreement that will subject the bloc to 15% tariffs on most of its goods entering America. This is lower than a 30% levy previously threatened by the US president. Sir Keir is also likely to use his time with Trump to raise the starvation faced by the population of Gaza. The Prime Minister has condemned Israel for restricting the flow of aid into the territory, alongside the leaders of France and Germany. The UK will take part in efforts led by Jordan to airdrop aid into Gaza, Starmer said over the weekend. Elsewhere, he is facing pressure from more than 220 MPs to immediately recognise the state of Palestine, something which French president Emmanuel Macron has promised to do. PA Media Humanitarian aid is airdropped to Palestinians over Gaza City, Gaza Strip (Jehad Alshrafi/AP). The US is the country 'with the leverage' to make a difference in the conflict in Gaza, the Business Secretary suggested. Reynolds told BBC Breakfast that Gaza would 'of course' be on the agenda for the meeting of the two leaders, adding: 'The intolerable scenes that we're seeing, the world is seeing, are the backdrop to that. 'And of course, the US has itself secured on two occasions ceasefires in the conflict, so they have been actively engaged in it, working with Egypt, the Qataris, and other key partners in the region.' Swinney also promised to raise Gaza with Trump, as it was 'causing deep unease and concern and heartbreak within Scotland'. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
