Global Trade Deal Boosts Stocks Amid Crucial Policy Week
Global stocks surged and the euro strengthened following a new trade agreement between the U.S. and the EU. The agreement, which mitigates higher tariffs and provides stability, comes ahead of pivotal policy meetings by the Federal Reserve and the Bank of Japan. Asian markets displayed mixed reactions.
Stocks rallied globally on Monday as investor sentiment improved after the U.S. and the European Union reached a significant trade agreement. The deal, involving a 15% import tariff on most EU goods, allayed fears of increased tariffs and stabilized markets just ahead of key Federal Reserve and Bank of Japan meetings.
A strategic framework agreement with the EU comes on the heels of a similar deal with Japan, showcasing the U.S.'s aggressive trade policy leading up to the looming August 1 deadline for trade deal finalizations. Talks with China are scheduled in Stockholm amid hopes for an extended truce between the world's top economies.
Markets, including the S&P 500 and Nasdaq, reacted positively, and European futures saw a near 1% increase. Despite minor setbacks in Asian markets, the trade agreement signifies a crucial step in averting larger trade disputes. Investors will keenly observe upcoming policy remarks from the Fed and the BOJ.
(With inputs from agencies.)
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