After the conclusion, announced on Sunday, of a trade agreement between the United States and the European Union (EU) providing for 15% tariffs on products from the block of 27, European stock exchanges are expected to open sharply on Monday.

After improving its profitability and cash generation in the first half of the year, automotive supplier Forvia confirmed its 2025 goals on Monday.

The manufacturer of seamless tubes Vallourec announced that it has completed the sale of its subsidiary Serimax to the French investment company Aldebaran Capital Partners for an enterprise value of 79 million euros.
Around 7:40 a.m., the CAC 40 futures contract sold for 1%, according to data from broker IG.

Futures contracts on the New York Stock Exchange are rising after the announcement, on Sunday, of an agreement on tariffs between the United States and the European Union that makes it possible to avoid a trade war between the two partners. Futures contracts on European equity markets rose sharply on Monday.

On Wall Street, the Dow Jones index futures contract gained 0.4%, while the S&P 500 gained 0.5%. The contract on the Nasdaq 100, rich in technological stocks, won 0.6%. The New York Stock Exchange could thus reach new highs after its record highs last week. Both the S&P 500 and Nasdaq Composite indexes ended Friday's session at new all-time highs.
Donald Trump announced on Sunday the conclusion of a trade agreement with the EU including a 15% base tariff for European products, including cars. He added that the EU had agreed, as part of the agreement, to buy 750 billion dollars worth of energy products from the United States and to invest 600 billion dollars in the country in addition to what it already invests there.

Donald Trump said following a face-to-face interview on Sunday with the President of the European Commission, Ursula von der Leyen, at his golf course in Turnberry, Scotland that he thinks it will be great for both parties.

For Ursula von der Leyen, this agreement “creates certainty in uncertain times.” She said the 15% level would apply to “the vast majority of EU exports”, including cars, semiconductors and pharmaceuticals. The 15% level “is the best we can get,” she said.
Donald Trump indicated that the EU had agreed to “open its countries to trade at zero tariffs.” Ursula von der Leyen for her part said that the two parties had agreed on zero tariffs on both sides for certain strategic products, including airplanes and their parts, some chemicals, semiconductors and some agricultural products, among others, and said that both parties would work to add more products to this list.

The worst-case scenario between the United States and the EU has been avoided as the two parties seem to have reached an agreement in principle on a 15% customs tariff for almost all European products exported across the Atlantic, says Carsten Brzeski, head of macroeconomics at ING.

For him, “the big caveat about this deal is that nothing is written in black and white yet.” Carsten Brzeski also said that “the next few hours and days will hopefully bring more clarity. Therefore, the deal should be evaluated very carefully.”

In Asia, the Nikkei index on the Tokyo Stock Exchange lost 0.9% on Monday at the end of trading. The Shanghai Composite Index gained 0.1%, while the Hang Seng on the Hong Kong Stock Exchange rose by 0.5%.

The two-year stock rate was unchanged at 3.94%. Around 7:40 a.m., the 10-year US Treasury bond rate rose by 1 basis point, to 4.40%.

The greenback gained 0.1% against the Japanese currency, at 147.81 yen. Around 7:40 a.m., the euro lost 0.1% to 1.1743 dollars.

Supported by the trade agreement between the United States and the EU, oil prices are rising this morning.

The September contract for light sweet crude (WTI) listed on Nymex rose 36 cents, or 0.6%, to $65.52 per barrel. At around 7:40am, the September North Sea Brent contract listed in London gained 41 cents, or 0.6%, to $68.85

According to Barbara Lambrecht of Commerzbank Research, market attention may turn to the publication this week of the first estimates based on surveys for production by the Organization of Petroleum Exporting Countries (OPEC) in July. For the latter, “it will be interesting to see to what extent the five OPEC countries participating in voluntary supply cuts have increased their production.”