FX.co ★ European Stocks Rise as EU Nears Trade Pact with US

European stocks experienced an uptick on Monday afternoon, with the STOXX 50 index rising by 0.7%, following indications from the EU of progress on a trade agreement with the US. The EU is focused on avoiding significant tariff escalations by negotiating a preliminary deal that could implement a standard 10% tariff on numerous goods. However, this agreement may feature lower tariffs for critical sectors such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft. Concurrently, the EU is preparing retaliatory tariffs on a variety of US goods as a countermeasure to Trump’s metal tariffs. Officials cautioned that if an accord isn't reached, further actions, including export controls and restrictions on US access to public contracts, might be enacted. Meanwhile, the energy sector faced setbacks after OPEC+ announced a larger-than-anticipated increase in output for August. In individual stock movements, shares of Siemens Healthineers and other German medical technology companies decreased after China imposed counter-sanctions on EU-produced medical devices. Furthermore, Merck KGaA saw a decline following a brokerage downgrade.