Volkswacht Bodensee - Most markets rise, euro boosted after EU strikes US trade deal

News of the deal, announced by Donald Trump and European Commission head Ursula von der Leyen on Sunday, followed US agreements last week, including with Japan, and comes ahead of a new round of China-US talks.

Investors were also gearing up for a busy week of data, central bank decisions and earnings from some of the world's biggest companies.

Trump and von der Leyen announced at his golf resort in Scotland that a baseline tariff of 15 percent would be levied on EU exports to the United States.

"We've reached a deal. It's a good deal for everybody. This is probably the biggest deal ever reached in any capacity," Trump said, adding that the levies would apply across the board, including for Europe's crucial automobile sector, pharmaceuticals and semiconductors.

Brussels also agreed to purchase "$750 billion worth of energy" from the United States, as well as make $600 billion in additional investments.

"It's a good deal," von der Leyen said. "It will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic."

The news boosted the euro, which jumped to $1.1779 from Friday's close of $1.1749.

And equities built on their recent rally, fanned by relief that countries were reaching deals with Washington.

Hong Kong led winners, jumping around one percent, with Shanghai, Sydney, Seoul, Wellington, Taipei and Jakarta also up, along with European and US futures.

Tokyo fell for a second day, having soared about five percent on Wednesday and Thursday in reaction to Japan's US deal. Singapore and Seoul were also lower.

The broad gains came after another record day for the S&P 500 and Nasdaq on Wall Street.

"The news flow from both the extension with China and the agreement with the EU is clearly market-friendly, and should put further upside potential into the euro... and should also put renewed upside into EU equities," said Chris Weston at Pepperstone.

Traders are gearing up for a packed week, with a delegation including US Treasury Secretary Scott Bessent holding fresh trade talks with a Chinese team headed by Vice Premier He Lifeng in Stockholm.

While both countries in April imposed tariffs on each other's products that reached triple-digit levels, US duties this year have temporarily been lowered to 30 percent and China's countermeasures slashed to 10 percent.

The 90-day truce, instituted after talks in Geneva in May, is set to expire on August 12.

Also on the agenda are earnings from tech titans Amazon, Apple, Meta Microsoft, as well as data on US economic growth and jobs.

The Federal Reserve's latest policy meeting is expected to conclude with officials standing pat on interest rates, though investors are keen to see what their views are on the outlook for the rest of the year in light of Trump's tariffs and recent trade deals.

The Bank of Japan is also forecast to hold off on any big moves on borrowing costs.

- Key figures at around 0230 GMT -

Tokyo - Nikkei 225: DOWN 0.7 percent at 41,148.07 (break)

Hong Kong - Hang Seng Index: UP 1.0 percent at 25,631.28

Shanghai - Composite: UP 0.3 percent at 3,602.97

Dollar/yen: UP at 147.74 yen from 147.68 yen on Friday

Euro/dollar: UP at $1.1755 from $1.1738

Pound/dollar: UP at $1.3436 from $1.3431

Euro/pound: UP at 87.48 pence from 87.40 pence

West Texas Intermediate: UP 0.5 percent at $65.48 per barrel

Brent North Sea Crude: UP 0.5 percent at $68.80 per barrel

New York - Dow: UP 0.5 percent at 44,901.92 (close)

London - FTSE 100: DOWN 0.2 percent at 9,120.31 (close)

A.Zbinden--VB