US–EU Trade Deal Lifts Stocks and Euro — Market Feels Relief
The United States and the European Union have reached a big trade agreement that is giving relief to investors and markets. Under this deal, the U.S. will now charge a 15% tariff on European goods instead of the earlier plan of 30%. In return, the EU has agreed to invest more in U.S. energy and military products.
This new deal removes a major fear from the market. Investors were worried that rising tariffs could hurt global trade and slow down the economy. Now, with this deal in place, those worries have reduced. This is seen as a win for both the U.S. and the EU.
After the news, stock markets moved up. U.S. stock futures rose by around 0.4%, and Nasdaq futures went up 0.5%. European and Asian markets also saw gains. At the same time, the euro got stronger because investors now feel more confident.
Experts say this deal makes the market feel more stable. Companies now have a clearer idea of future trade costs, which helps them plan better. This has increased risk-taking by traders, pushing stock prices higher.
Still, some European industries like cars and medicines were hoping for lower tariffs or none at all. But many agree that 15% is better than 30%, and this deal prevents things from getting worse.
This agreement also sets the stage for future trade talks with China and Canada, which are expected to take time. Now, the focus shifts to the upcoming Federal Reserve meeting, where traders will watch for clues about interest rates.
Impact:
Markets might stay strong if trade talks continue to go well.
The euro could remain firm as investor mood improves.
Next moves may depend on Fed signals and economic data this week.