CNBC: Markets No Longer Focused on US-EU Trade Agreements, Urgently Need a New Catalyst

BlockBeats News, July 29—According to CNBC, European and US stock markets reacted tepidly to the trade agreement reached between Europe and the US over the weekend. The S&P 500 index edged up slightly, but the increase was almost negligible; meanwhile, the European Stoxx 600 index declined. Both indices saw gains during their respective trading sessions, but those gains were erased by the close.

For continental Europe, there is a growing realization that the agreement may not actually be in their favor. German Chancellor Friedrich Merz and French Minister for European Affairs Benjamin Haddad both expressed hopes for more open trade. Meanwhile, US President Trump announced on Monday that he is "very likely" to impose a unified tariff of 15% to 20% on countries that have not signed a trade agreement with the US. This suggests that most tariffs may stabilize at this level in the future, helping to ease the uncertainty that previously weighed on the market.

In addition, economists are lowering their expectations for the impact of tariffs on the US economy—which means that even if new agreements are reached in the future, they may not trigger a strong rally on Wall Street.
As a result, the tariff issue has been temporarily set aside. Investors are now turning their attention to the upcoming earnings reports from the "Magnificent Seven": Meta and Microsoft are set to announce their results on Wednesday. If the results are strong, they may bring the optimism that was lacking in the market on Monday.