The market is experiencing "aesthetic fatigue" from trade agreements, and the US-EU 15% tariff agreement has not disrupted the stock market.

Note that, despite Trump calling it the "most heavyweight agreement in history," this US-EU trade agreement failed to boost market risk appetite, reflecting diminishing marginal effects of each new agreement. Global market reaction on Monday was subdued: European stock markets and the euro fell slightly, while US stocks remained mostly flat. In contrast, when the US-Japan trade agreement was announced last week, both Japanese and US stock markets saw significant increases. The tepid market response to the US-EU agreement signals a continued decline in Trump's ability to evoke intense market fluctuations through his trade policy. After the sell-off sparked by the announcement of tariff increases on April 2nd, the market gradually realized that the initial tax rates were just negotiation tactics, and the current 15% tariff level is the reality, leading to reduced subsequent volatility. Dilin Wu, research strategist at Pepperstone Group in Melbourne, stated that "the market's reaction to trade agreements has become more rational, especially against the backdrop of fluctuating interest rate cut expectations," "investors are more focused on hard data to validate economic and policy prospects, rather than overly interpreting trade agreements." Factors driving the cooling response to the US-Japan and US-EU agreements include the market consensus on the 15% tariff rate and more important market catalysts on the horizon this week's Federal Reserve interest rate meeting, US GDP and non-farm payrolls data, as well as the ongoing second quarter earnings season for US stocks. Taosha Wang, portfolio manager at Fidelity International in Hong Kong, said in an interview, "the possibility of trade headlines truly shaking the market has significantly decreased," "I believe the tail risk related to tariffs has significantly diminished." Another reason the US-EU agreement failed to stimulate risk assets is that some investors believe the terms are unfavorable to Europe. Under the agreement, EU exports face higher tariffs than the rates the EU imposes on imports from the US. European Commission President von der Leyen stated that this is to rebalance the region's trade surplus. While investors' attention is shifting away from Trump's trade agreements, there are still agreements that could unsettle the market such as the US-China trade deal. US Commerce Secretary Ross said that a 90-day extension of the current trade truce is the most likely outcome of the Stockholm talks between the two countries. Billy Leung, investment strategist at Global X Management, pointed out that "the market is somewhat tired of it," "don't forget that we are facing multiple uncertainties: the second day of US-China negotiations, more trade agreements pending announcement, the upcoming Federal Reserve decision, and the earnings reports of US market giants."