Global stock index falls, euro slides after US-EU trade deal

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Written by Sinad Caro and Mark Jones

New York, London (Reuters) -The global stock scale decreased on Monday while the euro stumbled and sold US treasury bonds, while investors welcomed a commercial agreement between the United States and the European Union at the beginning of a week full of movement of markets.

The framework commercial deal for the weekend, which the European Commission president, Ursula von der Lin, described as the best block, will impose an import tariff of 15 % on most of the European Union commodities, while the European Union is scheduled to spend $ 600 billion on US investments and open some important parts of its market.

Although the agreement may avoid a harmful confrontation between commercial partners, which represent nearly a third of world trade, some European capitals complained that they were unbalanced in favor of Washington.

“The matter of the euro is felt because when it really retreated, Europe has surrendered a lot,” said Jack Janasivic, director of the portfolio at Natixis Investment Solutions.

Yanasvichs added that the enthusiasm of the investor in stocks is likely to fade the commercial deal, as the market participants discussed the details and asked how Europe’s requirements for spending on American defense and energy will be implemented.

The MSCI scale has decreased all over the world 2.78 points, or 0.30 %, to 938.48. The index, which represents the stocks of 47 countries, boasted with five records of the previous six trading sessions.

On Monday, lukewarm stock procedures followed a series of standard highlands for the S&P 500 and NASDAQ, thanks to the quarterly profits and quarterly bets on Megacaps and artificial intelligence stocks in addition to optimism that the United States will eventually reach agreements with its commercial partners.

In Wall Street, 500 was barely managed by another record, or sixth consecutive, by completing 1.13 points, or 0.02 %, at 6389.77.

The NASDAQ compound also managed to record nearly 70.27 points, or 0.33 %, to 21178.58. The Dow Jones industrial rate decreased 64.36 points, or 0.14 %, to 44,837.56, still below its record in early December.

Earlier, the Stoxx 600 Pan-European Index closed 0.22 %, while the FTSEUROFIRST 300 index in Europe fell 0.15 %.

Phil Orlando, the chief market strategy in Fadri Hermes, said that the removal of uncertainty was a 15 % tariff rate, which was less than some “funny numbers” that are talked about in early April.

“You have some certainty to go forward, and you have a reasonable numbers,” he said.

Orlando said that investors should be patient because the S&P 500 index has already increased by about 32 % of its lowest level in April. He referred to inflation and salaries reports in the United States and a federal federal reserve meeting next week, along with MegacAps profit reports including Apple, Microsoft and Amazon.

The European Agreement follows the United States Conventions with Japan, Indonesia and the Philippines that were held last week. Other countries were still scrambling to conclude deals before the deadline of US President Donald Trump on August 1.

On Monday, senior economic officials in the United States and Chinese in Stockholm met for more than five hours of talks aimed at resolving long economic conflicts in a commercial war center between the best two economies in the world, seeking to extend the truce for three months.

At currencies, the dollar rose against the main currencies after the weekend agreement, as investors also look forward to the US and Japanese Central Bank meetings for this week.

The euro decreased by 1.27 % at $ 1.1591. Against Japanese yen, the dollar is strengthened 0.62 % to 148.57.

The dollar index rose <= USD> Which measures greenery against a basket of currencies including yen and euro, by 1.07 % to 98.65.

In US Treasury bonds, the return increased after the commercial deal and US bond auctions. The next American Federal Reserve policy meeting begins on Tuesday, and the Federal Reserve is expected to change interest rates this week. The central bank has been cautious about price cuts, as officials wanted to determine the impact of definitions on inflation before making decisions.

The return on US USA’s notes increased for 10 years by 2.8 basis points to 4.414 %, from 4.386 % late on Friday, while bond returns rose for 30 years 3.3 basis points to 4.9616 %.

The return on notes increased for two years, which usually moves with interest rate expectations for the Federal Reserve, 1.1 basis points to 3.928 %.

In the energy markets, oil prices rose by more than 2 % after the United States deal from the European Union and Trump’s announcement that it would shorten the deadline of Russia to end its war in Ukraine or confront a severe tariff.

American crude settled by 2.38 % or $ 1.55, at $ 66.71 a barrel, while Brent finished $ 70.04 a barrel, an increase of 2.34 %, or $ 1.60 a day.

In precious metals, gold fell to the lowest level in about three weeks, raising the dollar trade and risk trade, while investors were waiting for new signals on the price policy from the Federal Reserve meeting for this week.

Gold fell 0.56 % to $ 3317.31 an ounce. Gold futures in the United States decreased by 0.74 % to $ 3,309.20 an ounce.

(Sinéad Carew reports in New York, Mark Jones in London, Ankur Bnerjee, Gregor Stuart Hunter in Singapore; edited by Jean Harvey, Elgood and Nia Williams)

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2025-07-28 01:16:00

0 4 minutes read