Monday 28/July/2025 – 08:30 PM
European stock indicators fell from their highest levels in four months during a volatile session on Monday, to close to a slight decrease, and investors continue to assess the repercussions of the trade agreement that was concluded yesterday between the United States and the European Union, according to Reuters.
The Stoxx 600 index rises and then declines
The European Stoxx 600 index rose up to one percent, to touch its highest level in four months during the session. This increase is relieved by Washington and Brussels to an agreement that includes the imposition of 15% American customs duties on most European commodities, which is a significant reduction in the 30% percentage that the United States threatened to impose.
However, the index closed 0.2% low after the hopes of reaching an agreement to completely cancel the customs duties.
Emmatics and effect on specific sectors
“While the 15 percent customs duties on most European Union exports are less than 30 percent that Washington threatened to impose, it still represents a sharp leap from pre -2025 levels when a large number of commodities underwent customs duties less than three percent, which may add inflationary pressure in the months Next.
The shares of car companies incurred significant losses with 1.7%, despite the reduction of the fees imposed on this industry in the agreement of 27.5%levels.
The agreement also stipulated that the European Union member states buy an American military equipment without specifying a specific value. The shares of the defense companies in the index closed a decrease of 1.3%.
Previous gains and future prospects
The Stoxx index has achieved about 19% since the first shock that followed Trump’s threat to impose customs duties in early April. He is now 2.5% of his highest level ever.
