FX.co ★ European Stocks Rise on EU-US Trade Deal

European stock markets experienced an uptick on Monday, as evidenced by a 1.3% rise in the STOXX 50 and a 1% increase in the STOXX 600. This positive movement follows a weekend trade agreement between the United States and the European Union, which has alleviated some of the lingering trade tensions across the Atlantic. Under the terms of this deal, a 15% tariff will be imposed on European exports, a reduction from the initially proposed 30% by the US. Notably, certain goods, such as aircraft components and specific chemicals, will be exempt from these tariffs. Additionally, tariffs on automobiles will see a reduction to a rate of 15%. Furthermore, the agreement includes EU commitments to procure US energy and enhance its investments within the country. Notably, the automotive sector emerged as a top performer, gaining over 1.5%, driven by companies like Stellantis, VW, BMW, and Porsche.