European Markets Rise Following EU-India Trade Deal
LONDON — European stock markets experienced a positive trend on Tuesday as investors responded favorably to a significant trade agreement between the European Union and India, while anticipating an uptick in corporate profits.
The pan-European Stoxx 600 index was up by 0.3%, reflecting gains across most sectors and major exchanges.
Indian Prime Minister Narendra Modi shared on Tuesday that India and the EU have officially signed what has been described as a “landmark” free trade agreement, often referred to as the “mother of all agreements.” This landmark deal represents about 25% of the global gross domestic product, encompassing roughly one-third of worldwide trade.
The EU’s primary exports to India include machinery, transport equipment, and chemicals, as noted by the European Council. Conversely, the region primarily imports machinery, chemicals, and fuel from India.
In the markets, the STOXX chemical stock index saw a minor decline of 0.8%, with the trade-sensitive automotive sector dipping by 0.7%. On a slightly more positive note, regional industrial stocks rose by 0.1%.
This week marks the onset of earnings season, with investors closely monitoring financial reports from several key companies, such as ASML, Volvo, LVMH, and Deutsche Bank. On Tuesday, Atlas Copco and Logitech International were expected to announce their financials.
Stock Movements
Turning to specific stocks, Puma shares leaped by 8.6% following news that China’s Anta Sports plans to acquire a 29% stake from France’s billionaire Pinault family for 1.5 billion euros (around $1.78 billion).
On the downside, Swedish medical equipment manufacturer Getinge’s shares fell by 6.5%, placing it at the bottom of the regional index, as it reported a slight drop in orders for the fourth quarter of 2025. Full-year sales amounted to SEK 34.97 billion ($39.1 billion), just shy of analysts’ forecasts.
Meanwhile, British boot maker Dr. Martens suffered a 12% decline in sales, as the company reported lackluster quarterly results and expects predominantly flat sales growth for 2026. Its third-quarter sales fell 3.1% to £251 million ($343 million), primarily due to a 7% decline in direct sales after reducing promotional efforts. However, wholesale revenue did see a 9.3% increase.
CEO Ije Nwokolie remarked that this year represents a transformative period for Dr. Martens, emphasizing the company’s dedication to implementing changes aimed at fostering sustainable growth in the future.
Korean Customs Duty Concerns
In the backdrop of these developments, global trade uncertainty has escalated. US President Donald Trump recently criticized South Korea, announcing plans to increase tariffs on the country, which is Asia’s fourth-largest economy.
Trump mentioned on Truth Social that South Korea’s Congress has yet to ratify a trade agreement with the United States, forecasting duties on South Korean automobiles, medicines, and lumber to rise from 15% to 25%. This news led to a considerable drop in South Korean auto stocks, although losses mitigated overnight.
S&P 500 futures remained nearly unchanged after a robust start to the earnings week. Investors are also preparing for the US Federal Reserve’s upcoming interest rate decision later this week. It is largely anticipated that the Fed will keep interest rates steady within the target range of 3.5% to 3.75%, but traders are keenly looking for indicators regarding future rate cuts.
