Global Stocks Rise After EU Trade Deal With Trump Averts Tariff Shock

BANGKOK — Global markets opened the week on a high note after the European Union reached a last-minute trade deal with President Donald Trump, easing concerns over looming tariff hikes set for August 1.

The agreement introduces 15% tariffs on most EU exports to the U.S., replacing the former average of just 1%. The breakthrough followed a brief meeting between Trump and European Commission President Ursula von der Leyen at Trump’s Turnberry golf resort in Scotland.

The move helped prevent a broader trade war and sparked a global market rally. U.S. and Chinese officials also resumed trade talks in Stockholm, contributing to investor optimism.

European Markets Respond Positively

  • Germany’s DAX rose 0.3% to 24,296.51

  • France’s CAC 40 gained 0.6% to 7,881.21

  • UK’s FTSE 100 edged up 0.1% to 9,130.17

  • U.S. futures also rose, with the S&P 500 up 0.3% and the Dow Jones Industrial Average up 0.2%.

The agreement comes just days before a major deadline and helps both sides avoid the economic disruption that could have resulted from elevated tariffs on transatlantic trade.

Mixed Signals in Asia

Asia-Pacific markets had mixed results. While the trade news boosted confidence, uncertainty around a recent U.S.-Japan truce and Japan’s $550 billion investment pledge left investors cautious.

  • Tokyo’s Nikkei 225 dropped 1.1% to 40,998.27

  • Hong Kong’s Hang Seng added 0.7% to 25,562.13

  • Shanghai Composite edged up 0.1% to 3,597.94

  • Taiwan’s Taiex climbed 0.2%

  • South Korea’s Kospi rose 0.4%

  • Australia’s S&P/ASX 200 gained 0.4%

  • India’s Sensex slipped 0.7%

  • Thailand’s markets were closed for a holiday

Meanwhile, CK Hutchison, a Hong Kong-based conglomerate, saw its shares fall 0.8% after signaling it might seek a Chinese partner to buy its Panama Canal port assets — a potential geopolitical flashpoint.

Wall Street Hits New Highs

On Friday, U.S. markets capped off a record-setting week:

  • S&P 500 climbed 0.4% to a record 6,388.64

  • Dow Jones rose 0.5% to 44,901.92

  • Nasdaq added 0.2%, closing at an all-time high of 21,108.32

Retailer Deckers surged 11.3% thanks to strong international sales of Ugg and Hoka brands. In contrast, chipmaker Intel fell 8.5% after reporting quarterly losses and announcing job cuts as it struggles to compete with Nvidia and AMD in the AI chip race.

What’s Next on the Global Agenda?

Markets will closely watch:

  • Ongoing trade talks, particularly between the U.S. and China

  • Federal Reserve meeting this week on interest rate policy

  • Trump’s continued pressure on the Fed to cut interest rates, arguing it would reduce U.S. debt costs

Fed Chair Jerome Powell has signaled that more data is needed before adjusting rates. Wall Street largely expects a decision in September, not this week.

Commodity and Currency Updates

  • U.S. crude oil rose 62 cents to $65.78 per barrel

  • Brent crude added 62 cents to $68.28

  • The dollar strengthened to 148.41 Japanese yen from 147.71

  • The euro slipped to $1.1658 from $1.1758