Global equities dipped on Monday as investors digested a trade framework between the U.S. and EU. European Commission President Ursula von der Leyen described the deal as the best achievable, imposing a 15% tariff on most EU goods while the EU commits to $600 billion in U.S. investments and market access.
Some European capitals criticized the agreement as favoring the U.S., saying Europe gave up more than it gained. “The brunt of it is being felt by the euro because Europe gave up a lot, while the U.S. didn’t give up much,” said Jack Janasiewicz, portfolio manager at Natixis Investment Managers Solutions. Investor enthusiasm faded as concerns emerged about enforcement of Europe’s spending commitments on U.S. defense and energy.
Key Market Movements
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MSCI Global Index: Down 0.30% to 938.48
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S&P 500: Up 0.02% to 6,389.77, sixth consecutive record close
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Nasdaq Composite: Up 0.33% to 21,178.58, record close
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Dow Jones: Down 0.14% to 44,837.56, below early December peak
Monday’s muted trading followed last week’s record highs driven by strong earnings, AI optimism, and expectations of further U.S. trade agreements.
Investors now closely monitor how the U.S.-EU deal will impact currency markets, trade flows, and global economic growth in the coming months.
