Europe’s attempt to prevent more tariffs from Trump’s Administration last Friday was successful, as it became clear that the United States will not be imposing a 20% import tax on European automobiles. However, the offer to free the European Union from tariffs on cars is only valid if the EU agrees to lift its own sanctions on American vehicles. This announcement has had a positive effect on the European stock markets.
On the other hand, trade relations between the United States and China are not improving. Tomorrow China and the United States will be hitting each other with equal amounts of tariffs, though the fees from China will technically become effective first because of their earlier time zone.
We are also expecting a number of fundamental events today. From the United States we expect the June job report in the non-farm sector, as well as the minutes from the June meeting of the Federal Reserve. Moreover, in Europe there will be a speech by Bank of England governor Mark Carney.
