Governments worldwide are rushing to strike trade deals with the U.S. ahead of looming tariff deadlines. The EU announced a deal reducing baseline tariffs on European imports to 15%, investing $600 billion in the U.S. Talks with China may lead to an extension of the tariff deadline. Investors welcomed the news, boosting futures in Europe and the U.S.

The deal with the EU follows a pattern of investment in exchange for lower tariffs seen in the recent U.S.-Japan agreement. The new U.S. tariffs will impact medicinal products, motor vehicles, aircraft, steel, and aluminum. Investors hope for similar deals with other major trading partners like China, South Korea, and Taiwan, as talks continue.

Investors breathed a sigh of relief as the trade deal averted a potential trade war, providing clarity for companies. Market futures in Europe and the U.S. rose following the news, with the S&P 500 potentially reaching a new peak. Earnings from companies like Heineken, impacted by tariffs, will be closely watched to gauge the deal’s effects on businesses.

Key news on Monday includes earnings reports from Heineken NV, Wise PLC, and EssilorLuxottica SA, along with UK data on CBI Distributive Trades for July. Debt auctions in France for various maturities will also be closely monitored for market impact. The markets are reacting positively to the news of the trade deal, with automakers and drugmakers expected to benefit.

Read more at Yahoo Finance: US and EU avert tariff bust-up