A look at next day in the European and global markets of Gregor Stewart Hunter
We may hear a lot about the art of the deal this week.
With the deadline for the American tariff bearing the global economy this week, the European Union’s role is to announce a trade deal with the White House, albeit deviant in favor of the United States.
The Convention reduces the basic tariff for most European imports to 15 % of the previous threat to the Trump administration at a rate of 30 %, with the commitment to the European Union to invest about $ 600 billion in the United States.
Governments all over the world are racing to reach trade agreements with the United States to avoid imposing a liberation day tariff that was announced for the first time on April 2.
Talks are also taking place between the United States and China in Stockholm on Monday, with reports indicating the extension of 90 days to the deadline of the tariff.
Vasu Menon, the administrative director of the OCBC investment strategy in Singapore, also puts a tariff of 15 % a pleasant surprise because it is half of what the United States has threatened to impose on the European Union, and it provides hope that other major commercial partners from the United States can soon deals soon. “
It seems that the deal reflects the one that struck it between the United States and Japan last week, with a pattern of unilateral investment in exchange for low customs tariffs. This can indicate what can be expected as conversations move to the wire with other major economies such as China, South Korea and Taiwan.
The new US tariff for the European Union extends to medical, pharmaceutical and cars products, which were the largest bloc exports to the United States last year. The planes and their components, the next largest part, will get a zero tariff against zero, although the United States will remain in a 50 % tariff on steel and aluminum.
Investors welcomed the commercial deal that avoids a trade war and may bring corporate clarity.
The region’s future futures increased by 1 %, German futures dax increased by 1 %, and FTSE futures have gained 0.5 %. American stock futures increased by 0.4 % after the deal, as the S&P 500 was placed on the right track for the sixth consecutive day of gains and possibly new peak.
The profits from Heineken will classify corporate notes on Monday as the second largest beer maker in the world. However, the company’s shares are likely to obtain a batch of the newly sympathetic tire deal alongside auto and pharmaceutical companies in the region.
The main developments that can affect the markets on Monday:
Profits: Heineken NV, Wise PLC, Essilorluxotica SA
UK data: CBI distribution deals for July
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