A newly finalized US-EU trade agreement is expected to benefit LNG exporters, the Magnificent 7 tech giants, and the broader tech sector. Experts anticipate the deal will lead to increased energy exports to the EU and a reduction in digital taxes for big tech companies. Energy stocks such as Exxon Mobil, Chevron, and Dorian LPG are likely winners, as well as tech giants like Apple, Microsoft, and Meta Platforms. The agreement is seen as removing uncertainty and providing market clarity, with some experts noting that positive news may already be reflected in stock prices.
A newly finalized trade agreement between the United States and the European Union (EU) is anticipated to significantly benefit U.S.-based LNG exporters and the broader tech sector. Market experts predict that the deal will lead to increased energy exports to the EU and a reduction in digital taxes for major tech companies. Energy stocks such as Exxon Mobil, Chevron, and Dorian LPG are likely winners, along with tech giants like Apple, Microsoft, and Meta Platforms.
The trade agreement, announced ahead of the August 1 deadline, removes a key layer of uncertainty that had been affecting the markets. Louis Navellier, founder and chief investment officer of Navellier & Associates, highlighted LNG exporters like Dorian LPG Ltd. as likely beneficiaries, noting that the analyst community is revising their earnings estimates higher for these companies [1].
The deal includes the EU's commitment to purchase $750 billion in U.S. energy over three years and invest another $600 billion in the U.S. economy. Navellier also pointed to the "Magnificent 7" and other big U.S. technology companies as beneficiaries, anticipating that the EU will be more reluctant to impose digital taxes under the Donald Trump Administration [1].
The agreement's impact extends to the overall U.S. stock market. Chris Zaccarelli, chief investment officer at Northlight Asset Management, views the deal as "good for US markets as it removes some of the uncertainty that was an overhang for the market" [1]. He reiterated the positive outlook for technology and emphasized the energy sector, stating it "will be an even bigger beneficiary because of the intent of the EU to buy more energy from the United States as a result of the new trade deal" [1].
While the deal brings clarity, some of the positive news may have already been factored into stock prices. Zaccarelli noted, "news of this deal being ‘close’ was released last week and some of the good news was likely already reflected in prices before today's official announcement" [1].
Looking ahead, experts believe the August 1 deadline is largely being adhered to, providing further market certainty. However, major outstanding trade negotiations include China, where Treasury Secretary Scott Bessent is reportedly in talks to extend the August 14 deadline, and continuing discussions with Mexico and Canada. Smaller deals with other nations are also anticipated to be finalized by the end of this week [1].
References:
[1] https://finance.yahoo.com/news/trumps-eu-deal-good-us-203108606.html
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