Analyst: US-EU agreement eliminates tail risk in the market, with car manufacturers being one of the major winners.

Regarding the latest trade agreement reached between the US and Europe, Michael Brown, senior research strategist at Pepperstone, said: "Currently, the stock market is almost without needing much reason to rise. This agreement not only eliminates a major tail risk that the market has been worried about, but also reinforces the direction of development shifting from tough rhetoric to actual trade agreements. From an industry perspective, European car manufacturers are among the biggest winners of this news, as the 15% tariffs also apply to imported cars entering the US, similar to the exemptions Japan has received. Other clear beneficiaries include the US defense industry - considering the EU's procurement commitments in this area - and US energy stocks, especially given their upcoming nearly $1 trillion investments."