EU and India clinch major trade deal - what will Trump say?
Wednesday, 28 January 2026
Market Summary
European stocks ended on a high note last night after investors were buoyed by the European Union’s landmark trade deal with India. The pan-European Stoxx 600 closed 0.6% higher, with most sectors and major bourses in positive territory.
All eyes are now on US President Donald Trump’s reaction. Big tech have so far today driven US markets higher, and in mid-afternoon trading in New York, the S&P 500 is up 0.41%, and the Nasdaq is up 1% in advance of a big week of major company earnings - Meta Platforms and Microsoft, as well as Tesla, are all due to report Wednesday UST while Apple will share its results on Thursday. The Federal Reserve also releases its first policy decision of the year this week.
The Dow Jones dropped 0.9%, due largely to an 19% drop in UnitedHealth and other health insurers after the federal health authorities proposed raising payments to insurers by less than expected.
Asian markets closed up on Tuesday - and in South Korea that happened despite a fresh round of tariffs threats from Donald Trump. He said the country’s legislature had not approved its trade deal with Washington, and that tariffs on its goods would therefore climb to 25%, from 15%.
The Kospi reversed losses to gain 2.73% regardless.Japan’s Nikkei 225 gained 0.85%, Hong Kong’s Hang Seng rose 1.27% while mainland China’s CSI 300 was essentially flat.
Back here, the S&P/NZX50 gained 0.37% on Tuesday with some good news boosting final figures.
Listed broadcaster Sky Television said it had broadened its comprehensive rights deal with US studio Paramount, making good on an intent to diversify its entertainment content and reduce its past heavy reliance on industry giant Warner Bros Discovery. Listed property play Precinct said it had teamed up with a Singaporean sovereign fund to purchase prime waterfront commercial property assets in central Auckland.
The top performing stock in the day was Michael Hill Jeweller, which gained 12.05% on a trading update for the 26-week period to the end of December 2025. It said pre-tax earnings would be up as much as 24% on the prior comparable period, with sales up over 3% across the board.
Splitting the chain’s 248 stores by geography, its Canadian stores had record sales performance; the Australian stores were strong and New Zealand sales reversed a decline. However, gross margins would be broadly flat because of record prices for gold and silver.
Pacific Edge gained 9.63% after it sent news to shareholders that said a study by major US insurer Kaiser Permanente found Pacific Edge tests saved a large number of invasive and expensive procedures for the possibility of bladder cancer.
Santana Minerals advanced 6.03% on continued strength in gold markets, and Savor rose 4.76%.
New Talisman Gold Mines dropped 4.35%, Black Pearl Group fell 3.43%, Vista Group rose 2.93% and CDL Investments fell 2.60%.
In Sydney on Tuesday the S&P/ASX 200 gained 0.92%. The top stocks were biopharmaceutical company Telix Pharmaceuticals, which gained 8.31% after Chinese regulators accepted a new drug application for its prostate cancer imaging agent, and there were also milestones reached in its US market. Capstone Copper rose 7.49%.
While we slept
European Commission President Ursula von der Leyen has described the free trade deal between India and the European Union, which would remove or reduce tariffs on more than 90% of goods traded between the two, as the “mother of all deals”.
It sees India reduce tariffs on European automobile and agricultural products, while the EU would do the same for Indian textiles, leather, marine products and gems and jewellery.
“We have created a free trade zone of 2 billion people, with both sides set to gain economically,” said . She added that the deal sends “a signal to the world that rules-based cooperation still delivers great outcomes”.
Meanwhile, luxury conglomerate LVMH bet expectations with its results released overnight, with recovery in the Chinese market the key to improvement.
Over the full year, revenue declined 1%, coming in at 80.8 billion euros. But aside from Japan, Asia saw a noticeable improvement in trends compared to 2024, with a return to growth in the second half of the year, the company said.
LVMH is the parent company of a range of 75 different luxury brands including Louis Vuitton, Dior and Fendi. The US remains the main growth driver for the company, but China is stabilising, company executives told investors, and 2026 would to continue to deliver recovery for the luxury space, with about 5-6% growth across the sector.
What’s up today
Miriam Bell explores a week in construction sector liquidations, which do not seem to have slowed yet, despite early signs of economic recovery. Tom Pullar-Strecker looks at preparations in the logistics sector and beyond for any possible strike on Iran and the country manager at TechnologyOne gives his take on his “Boss Life”.
Today, business count and employment indicators for December will be released, and Finance Minister Nicola Willis will appear at select committee. In the US, the Federal Reserve will meet to start deciding its first policy rate decision of the year.