4 days ago
European shares rise to 4-month high after US-EU trade deal
July 28 (Reuters) - European shares advanced to a four-month high on Monday, led by gains in auto and pharmaceutical stocks, after the EU cinched 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), opens new tab rose 0.8% by 0715 GMT. Most regional bourses were also in the green, with UK's FTSE 100 (.FTSE), opens new tab adding 0.3%, Germany's blue-chip DAX (.GDAXI), opens new tab rising 0.7% and France's CAC 40 (.FCHI), opens new tab gaining 1.1%.
The trade agreement imposes a 15% tariff on most EU goods and requires the EU to invest around $600 billion in the U.S., with tariff rates on spirits still under negotiation.
Automobile stocks (.SXAP), opens new tab were boosted on the day with Porsche and Volkswagen ( opens new tab gaining 1.6% and 1.9%, respectively.
Mercedes-Benz ( opens new tab, Stellantis ( opens new tab and Volvo Cars ( opens new tab, which have pulled their 2025 financial guidance due to U.S. trade uncertainty, rose between 1.6% and 3%.
Pharmaceutical stocks (.SXDP), opens new tab also gained with the base tariff rate extending to cover healthcare. Novo Nordisk ( opens new tab and Roche (ROG.S), opens new tab both rose more than 1.5%.
Expectations of similar trade agreements with other U.S. trading partners before the August 1 tariff deadline have helped lift the benchmark STOXX 600 to within 1.8% of its all-time high hit on March 4, marking a 19.5% rebound from its April trough.
LVMH ( opens new tab rose 0.7% after media reports said French luxury goods group is in discussions with multiple buyers to offload its fashion label Marc Jacobs.
