Investors anticipate that the stock market will rise as Europe and the United States reach a trade agreement.

After reaching a trade agreement between the United States and the European Union, investors expect that when the market reopens on Monday, car manufacturers and luxury goods manufacturers will lead to a wave of relief-driven increases in the European stock market. US President Donald Trump announced the agreement on Sunday after meeting with European Commission President von der Leyen. According to the agreement, most of the EU's exports will face a 15% tariff. The EU leader stated that the tariff is comprehensive, but Trump stated that it does not include drugs and metals. Following the announcement of the agreement, the euro rose against other G10 currencies. The euro rose 0.2% against the US dollar to 1 euro to 1.1766 dollars, a 1% increase from last week. John Prasal, director of investment strategy at Westhai Asset Management, said the agreement "is enough to release what the stock market needs most: predictability." He stated, "The increased risk of tariffs is now eliminated, followed by a major macroeconomic disadvantage disappearing. For investors, this is not only a sigh of relief, but also a green light signal." Futures for the Euro Stoxx 50 index will reopen for trading around 2:00 am Paris time on Monday. Since investors optimistically believe that both sides will reach an agreement before the August 1 tariff deadline, sectors most affected by trade such as cars and consumer goods outperformed the overall market on Friday.