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.

U.S. President Donald Trump's successive announcements of deals setting baseline tariffs on the European Union and Japan are prompting questions about whether they're a road map for Canada to follow in trade talks.

This past weekend, Trump made a trade agreement with the European Union, establishing the baseline tariff for most imported goods at 15%

German chancellor Friedrich Merz said the trade deal struck by the EU with the US will hurt America and cause “considerable damage” to the Eurozone’s largest economy, as he battled criticism from business and political opponents.

FRANKFURT, Germany (AP) — The European Union’s trade agreement with the Trump administration is getting mixed reviews. EU officials say they warded off a total economic disaster. But French officials in particular say the EU punched below its weight while economists say the deal is dangerously vague.

The EU-US trade deal includes zero tariffs on aircraft, a big win after months of uncertainty. But Trump's tariffs could still weaken travel demand.

The European Union dodged an imminent trade war with the US this week, but markets and a growing chorus of critics have dispelled early hopes that the deal will bring a sense of stability back to transatlantic relations.

U.S. President Donald Trump and European Commission President Ursula von der Leyen have announced a sweeping trade deal