HONG KONG: Most stock markets climbed higher on Monday, with the euro strengthening after the European Union and United States finalised a landmark trade agreement aimed at preventing a damaging trade war.
The deal, announced by former US President Donald Trump and European Commission President Ursula von der Leyen, has injected optimism into global markets.
The agreement includes a baseline 15 percent tariff on EU exports to the US, covering key sectors such as automobiles, pharmaceuticals, and semiconductors.
Trump described the deal as “probably the biggest ever reached in any capacity,“ while von der Leyen emphasised its role in providing stability and predictability for businesses on both sides of the Atlantic.
Brussels also committed to purchasing $750 billion worth of US energy and making an additional $600 billion in investments.
The news pushed the euro to $1.1779, up from $1.1749 at Friday’s close.
Asian markets mostly advanced, with Hong Kong leading gains at around one percent.
Shanghai, Sydney, Seoul, Wellington, Taipei, and Jakarta also rose, while Tokyo dipped for a second day following last week’s rally. European and US futures pointed to further gains.
Analysts noted that the trade developments, including progress in US-China negotiations, have eased market concerns.
“The news flow from both the extension with China and the agreement with the EU is clearly market-friendly,“ said Chris Weston of Pepperstone.
Investors are now focused on upcoming trade talks between US and Chinese officials in Stockholm, as well as key earnings reports from tech giants like Amazon, Apple, and Microsoft.
The Federal Reserve and Bank of Japan are expected to maintain steady interest rates, though market watchers will scrutinise their outlooks amid shifting trade dynamics. - AFP
