Overview

• The pact replaces planned 30% US tariffs on most EU exports with a 15% maximum rate on goods traded across the Atlantic.
• It obliges the EU to channel $600 billion in investments into US projects and to purchase $750 billion of American energy and defence equipment.
• European stock futures rose over 1%, with Germany’s DAX, France’s CAC 40 and Italy’s FTSE MIB leading gains and Spain’s Ibex 35 up 0.5%.
• Latin American currencies weakened on renewed dollar demand, with the Mexican peso down 1.17% at 18.76 per dollar.
• US and Chinese envoys are convening in Sweden to discuss extending their 90-day tariff suspension before it expires on August 12.