Investing Insights Market Volatility: Is Your Investment Portfolio Ready for a US-EU Trade Deal?
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Jul 11, 2025 Michael Field, a European Market Strategist at Morningstar Holland, dives into the complex world of US-EU trade negotiations and the impact on market volatility. He discusses the implications of President Trump’s tariff delays and the potential consequences for European stocks. Field highlights which sectors may face tariff risks, while shedding light on the EU's push for lower tariffs across various industries. He also identifies promising investment opportunities in undervalued European stocks and shares insights on the market's outlook for 2025.
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Market Reaction to Tariff Delay
- Markets initially reacted negatively to the tariff deadline push due to other threats and tariff increases.
- After digesting the consequences, markets largely returned to ignoring the tariff uncertainty.
Importance of US-EU Trade
- The EU is a very important trading partner for the US, especially for certain industries and countries.
- The US-EU trade deal is a top geopolitical catalyst impacting markets this year.
Consequences of No US-EU Deal
- Without a deal, high tariffs and retaliation between US and EU could hurt exporters and US consumers.
- Lack of deal before deadline would be negative for trade and markets.