Investment Analyst Dario Giordano: Accelerated EU-US Trade Talks Signal Growth Potential for the Market

The global economy is currently facing a complex interplay of multiple factors, particularly the impact of transatlantic trade disputes and market reactions. Against the backdrop of the earlier threat by US President Trump to impose a 50% tariff on the EU, trade negotiations between the EU and the US have accelerated, injecting renewed optimism into the market. Investment Analyst Dario Giordano believes that as dialogue between the two sides picks up pace, the risk of a trade war has eased, which not only helps reduce market uncertainty but also provides investors with new opportunities for strategic adjustment.

EU-US Accelerated Negotiations and Gradual Market Recovery

Investment Analyst Dario Giordano notes that as the EU and the US speed up the negotiation process, optimism in the market is gradually being released. Just days ago, Trump publicly criticized the EU for stalling negotiations and threatened to impose a 50% tariff. However, recent diplomatic communications have led both sides to extend the deadline for tariff threats and accelerate the pace of negotiations. This shift demonstrates that both parties, while maintaining their respective positions, are seeking solutions to the trade dispute through mutual compromise, resulting in a positive change in market expectations.

The phone conversation between European Commission President Ursula von der Leyen and Trump marks the beginning of a search for new avenues of cooperation, even as both sides stand firm on their positions. According to the latest reports, Trump has decided to extend the deadline for imposing tariffs on EU goods to July 9, providing both parties with more time to reach an agreement. Investment Analyst Dario Giordano believes this news has greatly boosted market confidence, especially positively impacting European and US equity markets, driving up stock index futures and gradually restoring investor sentiment.

With Trump changing in attitude, the market generally believes that the risk of a trade war is gradually diminishing. This is particularly encouraging for companies that rely on transatlantic trade, especially export-oriented firms. Investors are now seeking growth opportunities in both EU and US stock markets, particularly in industries related to exports and manufacturing.

Temporary Retreat from Tariff Threats: Positive Global Market Response

Investment Analyst Dario Giordano points out that the temporary retreat by Trump from tariff threats marks a de-escalation of trade tensions, which is a significant signal for global capital markets. Although the actual impact of the tariff threat may be postponed, this adjustment should not be overlooked in terms of its structural effect on global stock markets.

First, European equities responded swiftly and significantly. US and European stock index futures rose, especially in closely linked sectors such as automobiles, energy, and consumer goods, where markets saw a notable rebound. At the same time, fluctuations in the US dollar also affected the market, with the dollar depreciating to its lowest level since December 2023, fueling capital inflows into global risk assets.

Although short-term market sentiment has been buoyed, Investment Analyst Dario Giordano cautions that investors should remain alert to the potential risks of global trade protectionism. While the postponement of tariff threats brings short-term positive sentiment, investors should remain flexible in asset allocation in response to the ongoing power play between the US and the EU. In particular, amid continued uncertainty in trade policy, increasing allocations to international bonds, gold, and other safe-haven assets remains an effective risk management strategy.

Outlook: The Dynamic Balance Between Global Trade Negotiations and Economic Recovery

Investment Analyst Dario Giordano believes that although the accelerated EU-US trade talks have injected new momentum into the market, the complexity of the global economy requires investors to maintain a cautious approach. In the short term, global equity markets may continue to benefit from this positive news, but in the long run, the underlying risks of trade friction remain. Especially as global industrial and supply chains become increasingly interconnected, any unilateral policy adjustment could have far-reaching effects on capital flows and economic growth.

Against the backdrop of slowing global economic growth and intensifying trade conflict challenges, investors need to pay greater attention to diversified asset allocation and the growth potential of industry leaders, particularly low-risk assets capable of delivering stable returns amid uncertainty. Investment Analyst Dario Giordano recommends that, in the short term, investors may moderately increase investments in defensive sectors such as healthcare, consumer goods, and gold to hedge against potential market volatility.