World shares advance after EU strikes trade deal with Trump
[July 28, 2025] By
ELAINE KURTENBACH
BANGKOK (AP) — Stock markets in Europe and Asia shot higher Monday after
the European Union worked out a trade deal with the Trump administration
ahead of this week's deadline.
U.S. futures and oil prices were higher ahead of trade talks in
Stockholm between U.S. and Chinese officials.
Germany's DAX gained 0.6% to 24,359.81, while the CAC 40 in Paris
advanced 0.8% to 7,900.48. Britain's FTSE 100 picked up 0.3% to
9,148.34.
The agreement between the EU and U.S. President Donald Trump calls for
15% tariffs on most EU exports to the U.S. Before Trump began ramping up
tariffs, the level was 1%.
The deal was announced after Trump and European Commission chief Ursula
von der Leyen met briefly at the president's Turnberry golf course in
Scotland. It staves off far higher import duties on both sides that
might have sent shock waves through economies around the globe.
Tokyo's Nikkei 225 index lost 1.1% to 40,998.27 after doubts surfaced
over what exactly last week's trade truce between Japan and Trump
entails, especially Japan's $550 billion pledge of investment in the
U.S.
Terms of the deal are still being negotiated and nothing has been
formalized in writing, said an official who insisted on anonymity to
detail the terms of the talks. The official suggested the goal was for a
$550 billion fund to make investments at Trump’s direction.
Hong Kong's Hang Seng index gained 0.7% to 25,563.32, while the Shanghai
Composite index edged 0.1% higher to 3,597.94. Taiwan's Taiex rose 0.2%.
CK Hutchison, a Hong Kong conglomerate that’s selling ports at the
Panama Canal, said it may seek a Chinese investor to join a consortium
of buyers in a move that might please Beijing but could also bring more
U.S. scrutiny to a geopolitically fraught deal. CK Hutchison's shares
fell 0.6% on Monday in Hong Kong.
Elsewhere in Asia, South Korea's Kospi climbed 0.4% to 3,209.52, while
Australia's S&P/ASX 200 rose 0.4% to 8,697.70. India's Sensex slipped
0.3%.
Markets in Thailand were closed for a holiday.
On Friday, the S&P 500 rose 0.4% to 6,388.64, setting an all-time for
the fifth time in a week. The Dow Jones Industrial Average climbed 0.5%
to 44,901.92, while the Nasdaq composite added 0.2%, closing at
21,108.32 to top its own record.
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People speak in front of an electronic stock board showing Japan's
Nikkei index at a securities firm Friday, July 25, 2025, in Tokyo.
(AP Photo/Eugene Hoshiko)
 Deckers, the company behind Ugg
boots and Hoka shoes, jumped 11.3% after reporting stronger profit
and revenue for the spring than analysts expected. Its growth was
particularly strong outside the United States, where revenue soared
nearly 50%.
But Intell fell 8.5% after reporting a loss for the
latest quarter, when analysts were looking for a profit. The
struggling chipmaker also said it would cut thousands of jobs and
eliminate other expenses as it tries to turn around its fortunes.
Intel, which helped launch Silicon Valley as the U.S. technology
hub, has fallen behind rivals like Nvidia and Advanced Micro Devices
while demand for artificial intelligence chips soars.
Companies are under pressure to deliver solid growth in profits to
justify big gains for their stock prices, which have rallied to
record after record in recent weeks.
Wall Street has zoomed higher on hopes that President Donald Trump
will reach trade deals with other countries that will lower his
stiff proposed tariffs, along with the risk that they could cause a
recession and drive up inflation. Trump has recently announced deals
with Japan and the Philippines, and the next big deadline is looming
on Friday, Aug. 1.
Apart from trade talks, this week will also feature a meeting by the
Federal Reserve on interest rates. Trump again on Thursday lobbied
the Fed to cut rates, which he has implied could save the U.S.
government money on its debt repayments.
Fed Chair Jerome Powell has said he is waiting for more data about
how Trump’s tariffs affect the economy and inflation before making a
move. The widespread expectation on Wall Street is that the Fed will
wait until September to resume cutting interest rates.
In other dealings early Monday, U.S. benchmark crude oil gained 40
cents to $65.56 per barrel. Brent crude, the international standard,
added 40 cents to $68.06 per barrel.
The dollar rose to 147.85 Japanese yen from 147.71 yen. The euro
slipped to $1.1719 from $1.1758.
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