The record rally in US stocks looks set for more gains after the European Union reached a trade deal with President Donald Trump, further easing fears of a damaging trade war.
Futures for the S&P 500 rose 0.4% after the index notched five successive all-time highs last week. Contracts for European stocks gained 1% after the deal, which imposes 15% tariffs on most of the bloc’s exports.
The MSCI All Country World Index traded at a record while Asian shares were flat. The euro strengthened against the dollar. Crude oil edged 0.3% higher.
Treasuries and a gauge of the greenback were steady. Markets, rebounding from April lows, are drawing comfort from the latest trade deal and signs the US and China will extend their truce, easing fears over Trump’s tariffs.
That optimism faces a test this week with key data, Federal Reserve and Bank of Japan meetings and earnings from megacap companies that may shape the outlook for markets and the global economy.
