As European Union leaders work through the consequences of their new trading arrangement with the US, they are confronting the bitter reality of just how far they have fallen.

U.S. President Donald Trump and European Commission President Ursula von der Leyen have announced a sweeping trade deal. It raises tariffs on most European goods to 15%.

Gulf equities were little changed in early trade on Tuesday as investors cautiously greeted a trade agreement between the U.S. and the European Union, while lacklustre second-quarter earnings weighed on sentiment.

German auto companies embraced greater clarity but warned that even the lower rate of tariffs agreed between Brussels and Washington would still hurt.

Wall Street is coming off a winning week fueled by strong earnings and recent deals between the U.S. and its trading partners.

The United States and European Union clinched a trade agreement on Sunday that will see EU exports taxed at 15 percent, in a bid to resolve a transatlantic tariff stand-off that threatened to explode into a full-blown trade war.

The United States and the European Union agreed Sunday to a trade framework setting a 15% tariff on most goods, staving off -- at least for now -- far higher imports on both sides that might have sent shock waves through economies around the globe.

Ambiguity abounds around the terms for pharmaceutical goods under the U.S.-EU trade truce agreed Sunday. Pharma firms are urging clarity over whether their products will be subject to 15% tariffs on EU goods imported to the U.