News Of EU-U.S. Trade Deal Sends Global Shares Higher

Stock markets in Europe and Asia surged Monday after the European Union (EU) reached a trade agreement with the Trump administration ahead of this week’s deadline.

Hong Kong’s Hang Seng Index rose 0.7% to 25,563.32, the Shanghai Composite edged up 0.1% to 3,597.94, and Taiwan’s Taiex gained 0.2%. I Photo: Central News Agency

U.S. futures and oil prices also climbed in anticipation of upcoming trade talks in Stockholm between U.S. and Chinese officials, Elaine Kurtenbach reported for the Associated Press (AP).

Germany’s DAX rose 0.6% to 24,359.81, while France’s CAC 40 advanced 0.8% to 7,900.48. Britain’s FTSE 100 added 0.3% to 9,148.34.

The deal between the EU and President Donald Trump imposes a 15% tariff on most EU exports to the U.S., up from 1% before Trump began ramping up trade duties. The agreement was announced after a brief meeting between Trump and von der Leyen at his Turnberry golf course in Scotland.

It averts steeper import duties that could have triggered global economic turmoil.

In Asia, Japan’s Nikkei 225 index slipped 1.1% to 40,998.27 amid uncertainty over the terms of last week’s trade truce between Japan and the U.S., particularly Japan’s $550 billion investment pledge.

An unnamed official said terms were still under negotiation and not yet formalized. The official added that the goal was to establish a $550 billion fund to make investments directed by Trump.

Elsewhere in Asia, Hong Kong’s Hang Seng Index rose 0.7% to 25,563.32, the Shanghai Composite edged up 0.1% to 3,597.94, and Taiwan’s Taiex gained 0.2%.