EU‑U.S. Trade Deal Propels European Shares to Four‑Month High
European shares advanced to a four-month high on Monday, led by gains in auto and pharmaceutical stocks, after the EU clinched a trade deal with the U.S., avoiding a wider trade war ahead of the August 1 deadline.
The pan-European STOXX 600 index .STOXX rose 0.8% by 0715 GMT. Most regional bourses were also in the green, with UK’s FTSE 100 .FTSE adding 0.3%, Germany’s blue-chip DAX .GDAXI rising 0.7% and France’s CAC 40 .FCHI gaining 1.1%.
Automobile stocks .SXAP were boosted on the day with Porsche PSHG-p.DE and Volkswagen VOWG.DE gaining 1.6% and 1.9%, respectively.
Mercedes-Benz MBGn.DE, Stellantis STLAM.MI and Volvo Cars VOLCARb.ST, which have pulled their 2025 financial guidance due to U.S. trade uncertainty, rose between 1.6% and 3%.
Pharmaceutical stocks .SXDP also gained with the base tariff rate extending to cover healthcare. Novo Nordisk NOVOb.CO and Roche ROG.S both rose more than 1.5%.
The U.S. struck a framework trade agreement with the European Union on Sunday, imposing a 15% import tariff on most EU goods – half the threatened rate – and averting a bigger trade war between the two allies that account for almost a third of global trade.
U.S. President Donald Trump and European Commission President Ursula von der Leyen announced the deal at Trump’s luxury golf course in western Scotland after an hour-long meeting that pushed the hard-fought deal over the line, following months of negotiations.
“I think this is the biggest deal ever made,” Trump told reporters, lauding EU plans to invest some $600 billion in the United States and dramatically increase its purchases of U.S. energy and military equipment.
