In a significant diplomatic and economic development, global markets soared on Monday following a US-European Union trade agreement that aims to defuse a looming trade war. The euro climbed to $1.1779, up from $1.1749, as investors welcomed the deal’s promise of predictability and stability. “We’ve reached a deal. It’s a good deal for everybody,” US President Donald Trump declared at a joint press conference with European Commission President Ursula von der Leyen at his golf resort in Scotland. Von der Leyen echoed the sentiment, saying, “It will bring stability. It will bring predictability. That’s very important for our businesses on both sides of the Atlantic.” The agreement includes a 15 per cent baseline tariff on EU exports to the US, covering major sectors such as automobiles, pharmaceuticals, and semiconductors. Markets across Asia and Europe responded with enthusiasm. Hong Kong’s Hang Seng Index rose nearly 1 per cent, leading regional gains. Shanghai, Sydney, Seoul, Wellington, Taipei, and Jakarta also ended in the green, while Tokyo declined for the second consecutive session following a 5 per cent surge last week linked to Japan’s own US trade pact. European and US futures pointed to continued strength. Chris Weston, CEO of Thames Water, called the agreement “market-friendly”, adding in an AFP interview via Pepperstone, “The news flow from both the extension with China and the agreement with the EU should put further upside potential into the euro and EU equities.” Adding to the optimism, a new round of China-US trade talks is slated to take place in Stockholm, led by US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng. Meanwhile, global traders are bracing for a high-stakes week with earnings reports from tech giants Amazon, Apple, Meta, and Microsoft, as well as economic data releases and central bank meetings. While the US Federal Reserve is expected to hold interest rates steady, analysts will watch closely for policy signals, especially in light of Trump’s new tariff regime. The 90-day truce on tariffs with China, agreed upon in May, is set to expire on August 12, prompting urgency on multiple trade fronts.