EU, U.S. heading towards 15% tariff deal, EU diplomats say

The European Union and the United States are heading towards a trade deal that would result in a broad tariff of 15% applying to EU goods imported into the United States, two diplomats said on Wednesday.

The rate, which could also extend to cars, would mirror the framework agreement the United States has struck with Japan.

Wall Street's main indexes moved higher on Wednesday after a Financial Times reported that the EU and the United States were closing in on a trade deal, similar to the agreement U.S. President Donald Trump struck with Japan.

Wall Street, already on an upward trajectory, spiked after the report said that the U.S. and the EU are nearing a deal to set 15% tariffs on all European imports.

Both sides would waive tariffs on some products, including aircraft, spirits and medical devices, the report said.

The bullish momentum followed closely on the heels of Trump's trade deal with Japan, which will slash tariffs on Japanese autos to 15% from 27.5%, with duties on other goods also dropping to 15% from 25%.

An agreement with the Philippines also followed, which yielded a modest cut in tariff rate.

At 12:20 p.m. ET, the S&P 500  gained 31.08 points, or 0.49%, to 6,340.70 and the Nasdaq Composite rose 43.28 points, or 0.21%, to 20,935.97.

The Dow Jones Industrial Average  edged higher 417.80 points, or 0.93%, to 44,917.71, within striking distance of its record peak.

Wall Street's "fear gauge", the CBOE Volatility Index , dipped to its lowest level in over five months.