Key Takeaways
- High-stakes trade talks between the United States and China have commenced in Stockholm, with officials aiming to extend a crucial tariff truce set to expire on August 12.
- Former President Donald Trump has secured a significant trade deal with the European Union, establishing a 15% U.S. tariff on most EU goods, down from a threatened 30%.
- Trump also weighed in on the Gaza situation, expressing difficulty in dealing with Hamas and stating the U.S. is prepared to provide aid, while UK Prime Minister Keir Starmer emphasized the need for a ceasefire.
- Tesla (TSLA) confirmed the development of a compact Cybertruck, indicating future product expansion.
- Canada's wholesale sales for June showed a preliminary increase of 0.7%, surpassing earlier estimates, while Wells Fargo (WFC) shares experienced a 4.4% drop before market open.
Top economic officials from the United States and China began a new round of trade negotiations in Stockholm today, marking the third high-level meeting this year. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are leading the discussions, primarily focused on extending a 90-day tariff truce that is slated to end on August 12. The current tariff structure sees U.S. tariffs on Chinese goods at 30% and Chinese tariffs at 10%. The talks are also expected to broaden into other areas, including China's purchases of Russian and Iranian oil.
In other significant trade news, former U.S. President Donald Trump announced a major trade deal with the European Union in Scotland. The agreement sets a 15% U.S. tariff on most EU goods, a substantial reduction from the 30% rate Trump had previously threatened. This deal also includes commitments from the EU to invest $600 billion in U.S. military equipment and $750 billion in U.S. energy, aiming to reduce Europe's reliance on Russian sources. Trump hailed the agreement, stating it would "bring us closer together."
Geopolitical concerns remain prominent, with Donald Trump commenting on the ongoing conflict in Gaza. He described Hamas as "more difficult to deal with" and indicated the U.S. is "prepared to help Gaza situation" with food aid. Separately, UK Prime Minister Keir Starmer emphasized the urgent need for a ceasefire in Gaza and discussed plans for post-aid delivery.
In corporate and economic developments, Tesla (TSLA) confirmed that a compact Cybertruck is currently in development, as stated by its Vice President of Engineering. This signals potential diversification within the electric vehicle manufacturer's product lineup. Meanwhile, Wells Fargo (WFC) shares saw a pre-market decline of 4.4%.
Economic data from Canada showed a positive trend, with preliminary wholesale sales for June increasing by 0.7% month-over-month, exceeding the previous estimate of 0.1%. This suggests a potential stabilization in the Canadian economy towards the end of the second quarter. Furthermore, a recent CREATE-Research survey revealed that nearly 30% of institutional investors are now integrating generative AI into their operations, highlighting the growing adoption of advanced technologies in the financial sector. European Central Bank (ECB) President Christine Lagarde reiterated the importance of developing a digital euro, emphasizing its role in safeguarding the currency and ensuring its readiness for the digital age.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.