FX.co ★ European Stocks Steady as Trade Deal Optimism Fades

On Monday afternoon, Europe’s key stock markets stabilized after an initial surge prompted by the US-EU trade agreement. Both the STOXX 50 and the wider STOXX 600 saw modest gains of 0.2% later in the day, as the early enthusiasm transitioned into a more cautious outlook. The newly formulated agreement entails a 15% import duty on the majority of EU goods, alongside a promise from the EU to purchase $750 billion in US energy and additional military assets. It also offers selective access to crucial sectors of the European market. Although this outcome is perceived as an improvement over the previously suggested 30–50% tariffs proposed by Trump, uncertainty regarding the definitive terms has evoked apprehension among European leaders. Initially, auto stocks surged in morning trading but subsequently reversed, leading the losses. In contrast, pharmaceutical and semiconductor stocks registered gains, with the chip sector further bolstered by news of Tesla placing a multi-billion dollar order with Samsung.