Global Markets Rally After Breakthrough U.S.-EU Trade Accord

International markets echoed with optimism as a landmark trade truce between the United States and the European Union came into effect. Announced late Sunday, the accord established a new baseline U.S. tariff of 15% on most European exports, narrowly averting a full-scale trade war threatened by the previous 30% rate. In exchange, the EU has committed to $750b in energy purchases and $600b in investments in the U.S., though the agreement left certain strategic products—including aircraft, chemicals, and critical raw materials—exempted from the new duties.

Global investors pounced on the diminished threat of escalating tariffs. U.S. equity futures surged in premarket trading with Asian rivals such as Japan negotiating their own 15% tariff deal, slashing the threatened 25% rate. Although the relief is palpable, critics in Paris and Berlin warned of potential competitiveness concerns for Europe's industrial powerhouses, particularly in autos and pharmaceuticals.

Additionally, anticipation is building over the resumption of trade negotiations between the U.S. and China, following months of standoff. These high-stakes talks command the attention of global capital markets, already jittery ahead of the August 1 deadline when U.S. tariff hikes on major trade partners were originally set to take effect. The mood is tentative but upbeat, as earnings season enters its zenith with heavyweights Microsoft, Meta, Amazon, and Apple scheduled to report, potentially catalyzing further volatility or providing a stabilizing anchor for world markets