Stoxx 600, FTSE, CAC, DAX, earnings
Diminishing perspective of skyscrapers in London city center
Chunyip Wong | E+ | Getty Images
L.ONDON — European stocks opened broadly higher on Tuesday as investors reacted to the European Union’s landmark trade deal with India and braced for a surge in corporate profits.
With 20 minutes left in the trading session, the pan-European Stoxx 600 index was up 0.3%, while most sectors and major stock markets were in positive territory.
India and the EU have signed a “landmark” free trade agreement that has been called the “mother of all agreements”, Prime Minister Narendra Modi announced on Tuesday. The agreement represents about 25 percent of global GDP and about a third of global trade.
The EU’s biggest exports to India are machinery, transport equipment and chemicals. based on To the Council of Europe. The bloc’s biggest imports from India are machinery, chemicals and fuels.
Europe’s Stoxx Chemicals index was last traded down 0.6%, while the trade-sensitive automotive sector lost 0.1%. Regional industrial stocks rose 0.3%.
Earnings season is kicking off again this week, with regional investors eyeing the latest financial reports from ASML, Volvo, LVMH and Deutsche Bank as well. On Tuesday, Atlas Copco sandvik And Logitech International They need to report.
Global trade uncertainty increased overnight after US President Donald Trump targeted South Korea on Monday and said he would increase tariffs on Asia’s fourth-largest economy.
Trump said on Truth Social that the country’s legislature has not approved Seoul’s trade deal with Washington and that tariffs on South Korean autos, pharmaceuticals and lumber will rise from 15% to 25%. Shares of South Korean autos fell sharply but recovered losses overnight.
S&P 500 futures were near flat overnight after the major averages started the heavy earnings week on a positive note. Investors are also waiting for the Fed’s interest rate decision to be announced at the end of this week.
The central bank is expected to keep its policy rate in a target range of 3.5% to 3.75%, but investors will be looking for clues as to when future cuts might occur.
— CNBC’s Pia Singh and Priyanka Salve contributed to this market report.
