• July 28, 2025
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European stocks rise to four-month high after the U.S. and EU strike trade agreement

European stocks rise to four-month high after the U.S. and EU strike trade agreement

Euro falls as greenback boosted by U.S. trade optimism

The euro was 0.53% lower against the U.S. dollar at $1.167 at 9:15 a.m in London (4:15 a.m. ET), as the greenback notched broad gains on the back of the EU trade deal announced Sunday.

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Euro/U.S. dollar.

While uncertainty remains over the arrangement for some sectors, the main points of a 15% tariff on EU exports to the U.S. and a committment for higher spending on U.S. energy and other goods were broadly in-line with market expectations and increased risk sentiment on Monday, Mohamad Al-Saraf, associate in fixed income and FX research at Danske Bank, said in a note.

The U.S. dollar has traditionally been a so-called “safe haven” asset which investors flee to in a risk-off environment. However, that dynamic has often reversed this year, as much market uncertainty has stemmed directly from U.S. policy.

Strategists at ING said Monday that while the market reaction to the U.S.-EU trade deal was positive, FX traders would now turn their attention to a slew of U.S. data this week, which includes jobs figures, second-quarter GDP and Personal Consumption Expenditures, the Federal Reserve’s preferred inflation gauge.

— Jenni Reid

Brewers slide on Heineken results

— Michael Considine

European autos index up 1.5%

A car at the new Citroen C5 Aircross’ production line in the Stellantis carmaker plant in Chartres-de-Bretagne, near Rennes, western France, on July 3, 2025.

Damien Meyer | Afp | Getty Images

Europe’s carmakers jumped on Monday morning, reacting positively to news that the U.S. and European Union have secured a framework trade agreement.

U.S. President Donald Trump on Sunday said the trade agreement, which will see Washington reduce tariffs to 15% on EU goods entering America, will be “great for cars.”

The Stoxx Europe autos index led gains during early morning deals, up more than 1.5%.

French car parts supplier Valeo was last seen up 5%. Jeep maker Stellantis, Porsche and Mercedes-Benz Group were all up more than 2%.

— Sam Meredith

European stocks hit four-month high

European stocks have risen to hit a four-month high after the U.S.-EU agreed to a trade deal.

The Stoxx Europe 600 index rose 0.8%, with other regional bourses also trading higher.

The U.K.’s FTSE 100 was up 0.3%, France’s CAC 40 was higher by 1.1% and Germany’s DAX rising 0.7%.

— Ganesh Rao

Heineken beats profit expectations

Heineken posted a beat on first-half operating profit, coming in at just over 1.4 billion euros ($1.6 billion).

The brewer is backing its guidance for the year, saying it expects organic profit to grow between 4-8%.

— David Martin

Opening calls

Good morning from London.

There’s just under an hour and a half to go until stocks begin trading for the first time since the U.S. and European Union agreed to a trade deal.

Futures tied to the Stoxx Europe 600 index point to a strong start with the index expected to open 0.8% higher.

Regionally, the German DAX is expected to rise 1%, France CAC 40 index is set to be 0.4% higher and the U.K.’s FTSE 100 is expected to rise 0.5%.

— Ganesh Rao

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