Investors anticipate a relief rally in European stocks following a trade deal between the US and EU. The agreement, announced by Trump and von der Leyen, removes tariff escalation risk, boosting market visibility. Euro Stoxx 50 futures are set to open higher, with sectors like autos and luxury goods expected to benefit.

The euro gained against the dollar after news of the deal, reaching $1.1766. Stocks sensitive to tariffs, including automakers like Stellantis NV and luxury goods makers such as LVMH, are poised for gains. The deal is seen as a positive development amidst global trade uncertainties.

Some investors caution that the rally may be short-lived until more details of the agreement are revealed. Market participants are optimistic about the prospects of US striking similar deals with Canada and Mexico. The agreement is expected to have positive implications for various sectors including defense, energy, and automakers.

Read more at Yahoo Finance: Stock investors expect rally as Europe clinches US trade deal