Global Stocks Mostly Rise as US Agrees to Trade Deal With EU

Key Takeaways

• Global stocks are largely rising Monday, a day after the European Union reached a trade deal with President Donald Trump and calmed investor concerns of an escalating trade war.
• The deal came just days after the U.S. struck a similar agreement with Japan for 15% baseline tariffs on imports, including automobiles.
• According to the EU, the 15% baseline tariff "applies across most sectors, including cars, semiconductors and pharmaceuticals."

Global stocks are largely rising Monday, a day after the European Union reached a trade deal with President Donald Trump and calmed investor concerns of an escalating trade war.

According to the EU, the 15% baseline tariff "applies across most sectors, including cars, semiconductors and pharmaceuticals." The deal came just days after the U.S. struck a similar agreement with Japan for 15% baseline tariffs on imports including automobiles, for which Trump had imposed a 25% levy on all foreign-made vehicles and parts in early April.

The Stoxx Europe 600 index is about 0.7% higher. Hong Kong's Hang Seng, where the biggest Chinese companies are listed, closed up 0.7% following a report in The South China Morning Post that the U.S. and China are set to extend their tariff truce by another three months. However, Japan's Nikkei ended down 1.1%.

Meanwhile, U.S. stock futures are gaining, with those associated with the Nasdaq and S&P 500 up 0.4% and 0.2%, respectively, after the indexes ended last week at fresh all-time closing highs. Futures associated with the Dow Jones Industrial Average are 0.1% higher as the index hovers near its all-time high set last December. 

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