Morning Bid: Trade deals bring happy days again

A look at the day ahead in European and global markets from Rocky Swift

You get a trade deal! You get a trade deal! Everybody gets a trade deal!

Well, it's not quite like Oprah doling out new cars, but trade agreements to avert the punishing tariffs from U.S. President Donald Trump are popping up all over the place, and markets are welcoming each with relief and enthusiasm.

Stock indexes in Tokyo and Singapore followed in the footsteps of Wall Street to chart new all-time highs. The Trump administration reached trade pacts with Japan, the Philippines and Indonesia, and the European Union and South Korea could be next in line. 

The EU and U.S. are closing in on a deal that would impose 15% tariffs on European imports, while waiving duties on some items, according to officials from the European Commission. Meanwhile, Treasury Secretary Scott Bessent said U.S. and Chinese officials will meet in Stockholm next week.

Earnings season is under way in the U.S., with 23% of the companies in the S&P 500 having reported. Of those, 85% have beaten Wall Street expectations, according to LSEG data.

Results from Magnificent Seven members - a group of high-performing tech stocks that powered Wall Street's rally for years - are in the spotlight for guidance on spending and returns surrounding artificial intelligence (AI).

Nasdaq and S&P futures rose after Google parent Alphabet posted a beat on earnings after the bell and outlined an expanded capital spending plan. Equity futures are pointing to strong openings across Europe.

But it's not all sunshine and lollipops. Luxury goods giant LVMH is expected to report another drop in quarterly sales, deepening investor worries about a prolonged downturn in the $400 billion market in the face of U.S. tariffs.

The results will likely show that any revival in demand for pricey fashion in the key U.S. and Chinese markets remains elusive. French luxury group Kering will report next week.

And the White House said overnight that Trump will go to the Federal Reserve on Thursday, a visit that follows his threats to fire Fed Chair Jerome Powell that have rattled U.S. bonds markets.

Key developments that could influence markets on Thursday:

- European earnings: LVMH, Deutsche Bank, BNP Paribas, Roche Holding, Nestle, Lloyds Banking Group

- U.S. earnings: Blackstone, Honeywell International, American Airlines

- European Central Bank monetary policy meeting, followed by comments from President Christine Lagarde

- July flash PMIs for the euro zone, Britain and the U.S.

- European data: Germany GfK consumer sentiment for August, UK GfK consumer confidence for July

- U.S. data: initial jobless claims, new home sales

- Canada retail sales

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(Editing by Jacqueline Wong)