European Markets Waver Amidst US-EU Trade Framework
European stocks fluctuated, closing slightly lower after the US and EU reached a framework trade deal, imposing a 15% tariff on many EU goods. Despite initial stock market relief, concerns over inflationary pressures remain. Auto and spirits stocks underperformed, while technology shares showed resilience anticipating potential tariff exemptions.
European shares retreated from a recent peak as the US and European Union unveiled a framework trade deal. The pan-European STOXX 600 index climbed initially on negotiation relief, but finished 0.2% down as the deal halted hopes for a zero-for-zero tariff regime.
Lale Akoner of eToro noted that a new 15% tariff on most EU goods, although lower than threatened, represents a significant hike from previous levels, potentially adding to inflation. The auto sector marked a 1.7% decline, while spirits producers like Pernod Ricard and Anheuser-Busch inBev also suffered losses.
Notably, the benchmark STOXX index has surged 19% since early threats of tariffs emerged. Meanwhile, energy stocks saw gains bolstered by increased oil prices, and technology shares slightly advanced with expectations of sector-specific tariff exemptions.
(With inputs from agencies.)
ALSO READ
EU Delays Retaliatory Tariffs in Bid to Secure Trade Deal with US
EU Extends Suspension of Retaliatory Tariffs Amid Tense Trade Negotiations with U.S.
India Urged to Tread Carefully in US Trade Deal Amid High Tariffs and Global Pressure
EU Suspends Retaliatory Tariffs to Foster Trade Talks with US
French Cheese and Wine Industry Braces for Impact of U.S. Tariffs
Google News