European stocks close higher on India-EU trade deal

The pan European Stoxx 600 jumped up 0.58%, France’s CAC 40 added 0.27%, the U.K.’s FTSE 100 rose 0.58%, while Switzerland’s SMI closed up by 0.56%

European stocks closed broadly higher on Tuesday with investors reacting positively to the India-EU trade deal, and some corporate updates.

India and the European Union agreed a free trade deal Tuesday, the largest such deal ever clinched by either side, as they contend with an erratic trade policy from trading partner the US.

We did it, we delivered the mother of all deals, Ursula von der Leyen, president of the European Commission, the EU’s executive, told reporters in New Delhi.

The agreement will strengthen economic and political ties between the 27-nation bloc and the world’s fourth-largest economy, the commission said in a statement, at a time of rising geopolitical tensions and global economic challenges, highlighting their joint commitment to economic openness and rules-based trade.

We have sent a signal to the world that rules-based cooperation still delivers great outcomes, president of the European Commission said in the statement.

The pan European Stoxx 600 jumped up 0.58%. France’s CAC 40 added 0.27% and the U.K.’s FTSE 100 rose 0.58%, while Germany’s DAX ended down by 0.15%. Switzerland’s SMI closed up by 0.56%.

Among other markets in Europe, Russia, Belgium, Czech Republic, Finland, Greece, Ireland, Netherlands, Norway, Poland, Portugal, Spain and Sweden closed higher.

Denmark and Iceland closed weak, while Austria closed flat.

Financials shares had a good session. Automakers were broadly lower after India and the European Union successfully concluded a Free Trade Agreement, cutting tariffs on cars from 110% to 10% for 250,000 vehicles annually.

In related news, investors also assessed the potential impact U.S. tariffs might have on global trade.

U.S. President Donald Trump, who threatened 100% tariffs on Canadian goods if Canada strikes a trade deal with China, has announced he would raise tariffs on South Korean imports to 25% because of a delay in the South Korean Legislature approving a trade deal with the U.S.