European markets rally as Trump and EU ink trade deal
Markets across Europe opened in the green on Monday morning after President Donald Trump sealed a trade deal with the EU after months of discussion.
The Cac 40 in Paris was up over one per cent and Germany’s DAX and Amsterdam’s AEX nearly one per cent.
In London, the FTSE 100 jumped over 0.4 per cent led by risers St James’s Place, WPP and GSK.
This helped push another fresh record high of 9,171.90 in early trading.
Derren Nathan, head of equity research at Hargreaves Lansdown, said: “There’s potential for indices both sides of the Atlantic to reach new high-water marks today.”
The rallies come after Trump and European Commission President Ursula von der Leyen announced a trade agreement late Sunday night.
The fresh agreement cut the US-imposed tariffs on the EU to 15 per cent from 30 across a host of product. Whilst the 50 per cent levy on steel and aluminium will be maintained, according to the President, von der Leyen has suggested it could be replaced with a quota system upon further negotiations.
Carmakers get a boost
Nathan said the reduced rate would be a “huge relief for multiple European industries, from pharmaceutical companies through to electronic manufacturers and luxury brand”.
Trump said on Sunday the agreement would be “great for cars” which comes after automakers suffered a bruising period in the aftermath of the White House’s trade offensive.
As markets opened Monday, French car parts supplier Valeo was up nearly five per cent and Vauxhall-owner Stellantis, Porsche and Mercedes-Benz group each jumped over two per cent.
Attention now turns to Bejing where the US and Cuina – the world’s two largest economies – are expected to extend their reciprocal tariff truce by another 90 days, as reported by Reuters.
The Trump Administration will meet with Bejing officials on Monday in Stockholm for another round of negotiations as the August 12 deadline looms.
The Shanghai – China’s flagship stock exchange – closed its latest session up 0.12 per cent. Meanwhile Japan’s Nikkei was down 1.1 per cent.