European capitals are putting a brave face on the trade deal they struck with President Donald Trump, which will see the European Union accept a 15% tariff on most of its exports to the US while reducing levies on some American products to zero.

The 15% tariff would be lower than previously threatened, but it would remain a high duty on America’s largest trading partner.

Stocks were on track for another session of gains on Monday after President Donald Trump said he had struck a deal to set 15% tariffs on the European Union, reassuring investors after months of trade-based uncertainty.

"The biggest piece in the trade deal puzzle still remains, and the Chinese are unlikely to be as willing to fold."