US/UK: The first trade deal is done

Citi

The first trade deal has been made, featuring the UK. While the Brits still face a 10% blanket tariff, select sectors, like steel and aluminum, find some relief. On net, the news was better than expected. VIX Index fell. US equities climbed. Treasuries sold-off aggressively, with lower-than-expected weekly jobless claims providing an extra kicker.

Good news continues with an announced trade agreement with the UK that reportedly features reduced barriers on US exports into the UK, lowering auto tariffs to 10% and metals duties to zero. Details remain to be finalized, but markets will read this development as a template for progress on negotiations with other trading partners.