Markets rally on easing tensions; EU stock futures rise on hopes of broader trade agreements

SYDNEY, July 23 — The Nikkei surged to its highest level in a year on Wednesday after Japan and the United States reached a trade agreement that softened the impact of potential auto tariffs. U.S. President Donald Trump announced that Japanese auto exports would face a 15% tariff, lower than previously threatened rates, alleviating investor concerns.

The positive sentiment extended to Europe, where stock futures gained on renewed hopes of a potential EU-U.S. trade deal. Meanwhile, a separate trade arrangement with the Philippines set a 19% tariff on imports to the U.S., further influencing global market dynamics.