While annual inflation in the euro area hit the central bank's 2% target last month, traders widely expected a hold in July — in large part due to geopolitical volatility. The U.S. is the EU's biggest bilateral trade and investment partner and the 27-member bloc exported 503 billion euros ($590 billion) in goods to the States last year.

European bond yields and the euro rose, lifted by hopes for a EU-U.S. trade deal and the European Central Bank’s pause in its aggressive rate-cutting campaign. Germany's benchma