Markets Surge Amid EU-US Trade Deal and Global Market Trends
European and Asian stock markets climbed as the EU and US administration reached a trade agreement, preventing potential economic disruptions. Meanwhile, Tokyo's market fell due to uncertainties over Japan-US trade promises. Global market dynamics, interest rate discussions, and corporate performance, like Intel's downturn, continue influencing the financial landscape.
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Stock markets in Europe and Asia experienced significant gains on Monday following the announcement of a trade deal between the European Union and the Trump administration, reached just before this week's deadline. This move preemptively curbed the risk of harsher tariffs that could have disrupted global economies.
The agreement, announced after a meeting between US President Donald Trump and European Commission chief Ursula von der Leyen, sets a 15 percent tariff on most EU exports to the US, up from 1 percent before Trump's tariff escalation. As a result, Germany's DAX rose by 0.6 percent, while France's CAC 40 increased by 0.8 percent. The UK's FTSE 100 gained 0.3 percent.
Amid the positive market reactions, Tokyo's Nikkei 225 index dropped by 1.1 percent due to uncertainty surrounding Japan's pledge of USD 550 billion investment in the US. Conversely, Hong Kong's Hang Seng index advanced by 0.7 percent, and various Asian markets showed marginal improvements. The week also put a spotlight on US corporate earnings, with mixed performances from companies like Deckers and Intel, impacting stock prices accordingly.
(With inputs from agencies.)
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