European shares hit a four-month high on Monday, driven by gains in pharma and semiconductor stocks. The STOXX 600 index rose 0.7%, with Germany’s DAX up 0.6%, France’s CAC 40 gaining 0.8%, and the UK’s FTSE 100 edging up 0.1%.
The recent US-EU trade deal, which includes a 15% tariff on most EU goods and a $600 billion EU investment in the U.S., boosted market optimism. The STOXX 600 is now just 1.8% below its all-time high from March, rebounding 19.5% since April.
Pharma stocks like Novo Nordisk (+0.4%) and Roche (+1.4%) hit monthly highs, while auto stocks, benefiting from reduced tariffs, reached two-month highs. Semiconductor companies ASML (+4.2%), Besi (+5.5%), and ASM International (+3.8%) were top performers.
However, spirits stocks Pernod Ricard (-1.4%) and Anheuser-Busch (-1.3%) fell as the trade deal left tariffs on spirits unresolved. Heineken dropped 4.3%, citing long-term tariff challenges. LVMH rose slightly amid reports of selling its Marc Jacobs brand.
On the FX front, The euro rose slightly to $1.1753, up 0.1% after an earlier 0.3% increase. It also gained 0.2% to 173.64 yen, marking its fifth straight session of growth and reaching a one-year high.
The dollar stayed steady at 147.65 yen, while the dollar index, which measures the US currency against others, remained flat at 97.582.
The British pound held steady at $1.3443. The Australian dollar was at $0.6568, and New Zealand’s kiwi dollar stayed at $0.6014, with little movement.
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