Berliner Boersenzeitung - Stock markets, dollar rise on EU-US trade deal

The deal, announced by President Donald Trump and European Commission head Ursula von der Leyen on Sunday, followed several US trade agreements last week, including one with Japan, and comes ahead of a new round of China-US talks.

The Paris stock market climbed 0.6 percent and Frankfurt gained 0.3 percent in early afternoon deals, while London flattened.

Britain, which had already struck a deal on tariffs with the United States, is outside the EU. That agreement has helped push London's benchmark FTSE 100 index to record highs in recent weeks.

Trump and von der Leyen announced at his golf resort in Scotland that a baseline tariff of 15 percent would be levied on EU exports to the United States.

"To many this seems a very one-sided deal, but the optimism shows throughout European equities" with investors welcoming at least the "clarity" it brought, said Joshua Mahony, chief market analyst at Rostro trading group.

The levies would apply across the board, including for Europe's crucial automobile sector, pharmaceuticals and semiconductors.

"It's a good deal," von der Leyen said, adding that it will bring "stability" and "predictability".

Germany's main auto industry group, the VDA, warned however that the 15-percent tariff on EU exports "burdens" carmakers.

Shares in Volkswagen, Porsche and Mercedes were each down around one percent in Frankfurt.

As part of the deal, Trump said the 27-nation EU bloc had agreed to purchase "$750 billion worth of energy" from the United States, as well as make $600 billion in additional investments.

French Prime Minister Francois Bayrou and Hungarian Prime Minister Viktor Orban slammed the deal. Spanish Prime Minister Pedro Sanchez said he backed it, but "without any enthusiasm".

"There remains a prevailing sense that the agreement does not constitute a significant win," said Jochen Stanzl, Chief Market Analyst at CMC Markets.

"While it is positive that an escalation of tariffs has been avoided, the deal feels more like a compromise than a triumph," he added.

- US-China talks -

In Asia, Hong Kong and Shanghai advanced, boosted by relief that countries were reaching deals with Washington.

While Tokyo fell for a second day, having soared around five percent on Wednesday and Thursday in reaction to Japan's US deal.

The broad gains came after another record day on Friday for the S&P 500 and Nasdaq on Wall Street.

Traders prepared for a busy week with US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng holding new trade talks in Stockholm.

A 90-day truce, set to expire August 12, has seen US tariffs lowered to 30 percent and China’s to 10 percent after both sides imposed triple-digit duties in April.

Also on the agenda are earnings from tech titans Amazon, Apple, Meta and Microsoft, as well as data on US economic growth and jobs.

The Federal Reserve is expected to keep interest rates unchanged at its meeting this week, with investors focused on its outlook for the rest of the year given Trump's tariffs and recent trade deals.

The Bank of Japan is also forecast to hold off on any big moves on borrowing costs.

- Key figures at around 1040 GMT -

London - FTSE 100: FLAT at 9,116.29 points

Paris - CAC 40: UP 0.6 percent at 7,879.15

Frankfurt - DAX: UP 0.3 percent at 24,285.13

Tokyo - Nikkei 225: DOWN 1.1 percent at 40,998.27 (close)

Hong Kong - Hang Seng Index: UP 0.7 percent at 25,562.13 (close)

Shanghai - Composite: UP 0.1 percent at 3,597.94 (close)

New York - Dow: UP 0.5 percent at 44,901.92 (close)

Dollar/yen: UP at 148.34 yen from 147.68 yen on Friday

Euro/dollar: DOWN at $1.1668 from $1.1738

Pound/dollar: DOWN at $1.3420 from $1.3431

Euro/pound: DOWN at 86.93 pence from 87.40 pence

Brent North Sea Crude: UP 1.1 percent at $68.39 per barrel

West Texas Intermediate: UP 1.1 percent at $65.89 per barrel

(U.Gruber--BBZ)