S&P Futures Increase as US-EU Agreement Allays Trade Fears – Europe Market Wrap
US market futures rose alongside the Dollar after the EU signed a trade agreement with Trump, and there are indications that the US and China will extend their truce. The Euro declined.
The record run in US stocks appears to be continuing, with S&P 500 futures up 0.2% after the index closed at an all-time high Friday. Europe’s Stoxx 600 index rose 0.6% following the US-EU agreement, which levies 15% tariffs on the majority of the bloc’s exports.
Even as fears of a devastating trade war subside, optimism is tempered by the risks posed by this week’s US jobs data, Fed and BoJ meetings, and megacap company earnings. Early gains in European automakers faded, and the Euro fell to its lowest level in a week against the Dollar as investors considered more unfavourable aspects of the agreement.
Trump and European Commission President Von der Leyen announced the EU Agreement on Sunday at his golf club in Turnberry, Scotland, but did not reveal the precise terms of the agreement or release any written documentation.
US energy stocks rose after Trump announced that the EU had agreed to buy $750 billion in American energy supplies and invest $600 billion in the US on top of existing commitments.
