U.S.-EU Trade Deal Calms Markets Amid Global Tensions

European markets saw modest gains after a trade agreement between the U.S. and EU was announced, reducing tariff threats. The deal imposes a 15% tariff on EU goods, sees $600 billion in U.S. investments, but faced criticism from European capitals. Asian markets reacted cautiously amid ongoing global trade negotiations.

European stock markets edged up slightly following a significant trade agreement between the United States and the European Union, which eased fears of escalating tariffs.

The STOXX 600 index rose 0.7% as the euro fell 0.3% against the dollar, reflecting mixed investor sentiment at the kickoff of a crucial week linked to U.S. President Donald Trump's trade policies.

This framework deal is seen as less burdensome compared to previously threatened tariffs, yet European leaders express concerns about its favorability towards the U.S., particularly in the forced purchases of American goods.

(With inputs from agencies.)