Expert: After the US and Europe reach an agreement, the stock market is expected to rise

Carmakers and luxury goods makers are expected to lead a wave of moderating gains in European stock markets when markets reopen on Monday, following a trade deal between the United States and the European Union. President Donald Trump announced the deal on Sunday after a meeting with European Union Commission President von der Leyen. Under the deal, most European Union exports, including cars, will face a 15 percent tariff. The European Union leader said the rate was comprehensive, but Trump said it did not include drugs and metals. John Plassard, head of strategy at Cité Gestion, said the deal was "enough to unlock what the stock market needs most: predictability". "The risk of further tariff increases has now been ruled out, and with it a major macro headwind has disappeared. This is not just a relief for investors, it is a green light," he said.