Markets Today: EU/India Reach Trade Deal, Gold Holds Highs, Puma Soars 19%, FTSE 100 Eyes Further Gains

[Ben Graham]

EU/India Reach Trade Deal

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On Tuesday, India and the European Union signed a long-awaited deal to lower import taxes on most goods. The goal is to increase trade between the two regions and rely less on the United States.

Key points of the deal:

• Benefits for the EU: The deal removes or lowers taxes on almost 97% of European goods sold to India. This is expected to double EU exports to India by 2032 and save European companies about €4 billion ($4.75 billion).
• Benefits for India: Over the next seven years, the EU will cut import taxes on 99.5% of goods coming from India. Taxes will drop to zero for Indian seafood, leather, clothes, chemicals, rubber, metals, and jewelry.
• What is excluded: Farming products such as soy, beef, sugar, rice, and dairy are not included in this agreement.

The trade negotiations between the EU and India, which had dragged on for twenty years, finally sped up after the United States imposed a 50% tax on certain Indian goods. This urgency was further driven by US allies reacting to President Trump’s tariff threats and his controversial attempt to buy Greenland.

In response to this global tension, Canadian Prime Minister Mark Carney recently gave a popular speech urging medium-sized countries to band together for protection. He now plans to visit India to sign new agreements on uranium, energy, and minerals.

Economically, the EU has established itself as India’s top partner. Last year, trade between the two reached $136.5 billion, surpassing India’s trade with both the United States ($132 billion) and China ($128 billion).

According to an Indian government official, lawyers will spend the next five to six months reviewing the final details of the agreement. Once that legal check is complete, the deal will be formally signed and is expected to be fully in action within a year.

European Session - Puma Soars 19%

European stock markets rose on Tuesday, driven by good news from major companies that helped calm fears about global trade tensions.

The main European index, the STOXX 600, increased by 0.34% early in the day. This rise highlights how investors are currently relying more on specific company updates rather than general economic news to guide their decisions during these uncertain times.

Several companies saw significant gains. Puma’s stock soared 19%, its highest level since last March after the Chinese company Anta Sports bought a 29% stake in the business for €1.5 billion ($1.8 billion).

This deal is expected to boost Puma's sales in the massive Chinese market. Additionally, shares in the Swiss pharmaceutical company Roche rose nearly 1% after it announced successful trial results for a new weekly weight-loss drug.

On the political front, markets remain worried about the long-term stability of global trade. These concerns persist because US President Donald Trump has threatened to raise taxes on cars from South Korea and other imports, citing delays in a trade deal signed last year.

On the FX front, the US dollar rose slightly on Tuesday but struggled to build significant momentum as traders remained cautious. Markets are on high alert for potential government intervention from the US and Japan to stabilize currency rates, and investors are waiting for the Federal Reserve's interest rate decision on Wednesday.

This caution has helped the yen steady in the 153 to 154 range, a solid recovery from its recent low of 159.23. By the end of trading, the dollar was up about 0.4% against the yen at 154.75.

Broader measures of the dollar showed a 0.2% increase, marking its first gain in four days, though it is still down about 1% since the start of the year. Other major currencies pulled back slightly from recent highs.

The euro dropped 0.2% to $1.1855, and the British pound dipped marginally to $1.3668, though both remain close to their four-month peaks.

Similarly, the Australian dollar slipped slightly but stayed near its highest level in 16 months.

Currency Power Balance

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Source: OANDA Labs

Gold prices rose on Tuesday, hovering just below the $5,100 milestone that was reached for the first time yesterday. Market participants are flocking to the metal as a safety net due to growing uncertainty surrounding US President Donald Trump’s policies.

As of late morning, the spot price of gold had climbed 1.6% to $5,092.09 per ounce, staying close to the all-time high of $5,110.50 set on Monday. US gold futures for February also posted a small gain.

It was also a volatile day for other precious metals. Silver jumped 8.4% to trade at $112.57 per ounce. This follows a record high of $117.69 on Monday, meaning silver has already surged by over 50% just since the start of the year.

Meanwhile, platinum fell 2.5% to $2,689.12 per ounce after hitting a record high yesterday, whereas palladium saw a gain of 3.3%, rising to $2,048.28.

Oil prices rose slightly on Tuesday after a massive winter storm struck the US Gulf Coast, disrupting oil production and refineries.

However, the price increase was limited because oil supply from Kazakhstan has started flowing again. Brent crude increased by 23 cents to $65.82 a barrel, while US West Texas Intermediate rose by 29 cents to $60.92. The severe weather has strained power grids and energy infrastructure across the US.

Experts estimate that over the weekend, American oil producers lost about 2 million barrels per day, which is roughly 15% of the country's total output.

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Economic Calendar and Final Thoughts

Data is largely thin today with Geopolitical developments likely to remain key. Greenland, tariffs, US-Iran among other discussions may be key drivers today.

There is also a host of US companies reporting earnings today which could also stoke volatility. The only US data of note is the weekly ADP jobs numbers. Barring a negative print here, the DXY can work its way higher and potentially fill Monday's gap to 97.42.

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For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)

Chart of the Day - FTSE 100

From a technical perspective, the FTSE 100 index has bounced off the 100-day MA on the four-hour timeframe.

This puts the index looking like it is on its way to fresh highs once more.

Immediate resistance rests at 10243 with a break above eyeing the 10277 handle before the 10300 handle comes into focus.

A move lower here may find support at 10178 before the psychological 10000 handle and the 200-day MA at 9973 comes into focus.

FTSE 100 Index Daily Chart, January 27, 2026

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Source: TradingView.com (click to enlarge)

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