Global Markets Rise Following EU-U.S. Trade Agreement

Stock markets across Europe and Asia advanced on Monday after the European Union secured a trade agreement with the Trump administration, alleviating fears of higher tariffs that could have disrupted global economies. The deal, announced following a brief meeting between President Donald Trump and European Commission chief Ursula von der Leyen in Scotland, sets 15% tariffs on most EU exports to the U.S., up from the previous 1% before recent tariff increases. The agreement averts the imposition of even steeper duties on both sides.

Germany’s DAX rose 0.6%, France’s CAC 40 gained 0.8%, and Britain’s FTSE 100 increased by 0.3%. In Asia, Hong Kong’s Hang Seng index climbed 0.7%, Shanghai’s Composite edged up 0.1%, and South Korea’s Kospi advanced 0.4%. However, Japan’s Nikkei 225 fell 1.1% amid uncertainty over the details of last week’s trade discussions between Japan and the U.S., particularly regarding Japan’s $550 billion investment pledge. An official familiar with the talks, speaking on condition of anonymity, said negotiations are ongoing and no formal agreement has been signed.

In corporate news, Deckers, the maker of Ugg and Hoka shoes, saw its shares jump 11.3% after reporting stronger-than-expected profits and revenue, especially from international markets. In contrast, Intel shares dropped 8.5% after the company reported a quarterly loss and announced job cuts as it faces increased competition in the semiconductor industry.

U.S. stock futures and oil prices also rose ahead of upcoming trade talks between U.S. and Chinese officials in Stockholm, and as investors await a Federal Reserve meeting on interest rates. President Trump has continued to urge the Fed to cut rates, but Chair Jerome Powell has indicated that further action will depend on economic data related to tariffs and inflation. The dollar strengthened against the yen, while the euro edged lower against the dollar.