European Shares Surge as EU Strikes U.S. Trade Deal
European stocks reached a four-month high after the EU secured a trade deal with the U.S., averting a trade war. The deal imposes tariffs and demands EU investment in the U.S. Auto and pharmaceutical stocks led the advance, with expectations of further deals boosting the STOXX 600 index.
European stocks soared to a four-month high on Monday, driven by significant gains in the automobile and pharmaceutical sectors. This surge follows a pivotal trade agreement between the European Union and the United States, effectively sidestepping a looming trade conflict ahead of the crucial August 1 deadline.
The pan-European STOXX 600 index marked a notable rise of 0.8% by 0715 GMT, with major regional markets following suit. The UK's FTSE 100 increased by 0.3%, Germany's DAX rose by 0.7%, and France's CAC 40 climbed 1.1%. The newly inked agreement includes a 15% tariff on most EU goods while mandating a $600 billion EU investment in the U.S., although tariff discussions on spirits persist.
Automotive stocks, such as Porsche and Volkswagen, enjoyed substantial gains, climbing by 1.6% and 1.9%, respectively. Pharmaceutical giants Novo Nordisk and Roche also gained over 1.5%. Expectations of similar forthcoming trade deals have propelled the STOXX 600 index close to historic highs, while LVMH experienced a 0.7% upturn amid potential brand divestiture reports.
(With inputs from agencies.)
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