Stock markets Stoxx Europe 600, FTSE 100, DAX and CAC 40 set to rise on U.S.-EU deal

After a strong start to Monday trade, European markets have largely slipped into the red as some of the shine comes off Sunday’s announcement of a U.S.-EU trade deal.

At 2:52 p.m. in London, the Stoxx 600 is down 0.12% at a session low, after notching a four-month high earlier in the day. Autos and retail, two sectors heavily impacted by transatlantic tariff rates, are down 1.8% and 0.67%, respectively. U.S. stocks, meanwhile, saw a muted open, as investors gear up for a slew of major earnings and data releases.

Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a Monday note that despite ongoing uncertainty for some sectors, immediate market reaction to the deal was positive because it was a step forward in the trade conflict.

“At the same time, we believe that the substantial rally in recent weeks has already priced in a lot of potential good news, and that investors should prepare for potential market volatility in the weeks ahead,” Haefele said.

While it provides more certainty on U.S.-EU trade, it still means a roughly sixfold increase in tariff rates compared with the pre-“Liberation Day” level, and leaves major uncertainty about the economic impact of that change, he said.

— Jenni Reid

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.

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

Shares of European beer makers slipped on Monday after Heineken posted better-than-expected first half results but pointed to softening consumer sentiment in the U.S. and Europe.

Heineken shares fell 3.5%, while those of AB InBev and Carlsberg were down 0.8% by 8:43 a.m. London time (3:43 a.m. ET).

“Near-term, we anticipate ongoing macro-economic challenges that may affect consumer spending, including softening sentiment in Europe and the Americas, inflation pressures and the impact of a weaker US dollar, and broader geopolitical fluctuations,” Heineken said in a statement.

The Dutch brewer nevertheless maintained its full-year outlook to organic operating profit growth of 4% to 8%.

— Karen Gilchrist

Cost cutting at auto supplier Forvia drove core profit up almost 8% in the first half of 2025.

The group’s CFO says the EU-U.S. trade deal will not cause it to change its full year targets, after the France-based group booked sales of almost 14 billion euros ($16.4 billion) in the first half, while warning that it expects the production environment to remain volatile and uncertain.

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 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 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

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