Markets are in turmoil: Trump's unexpected move wreaks havoc on the trade agenda
Stock markets showed mixed dynamics on Tuesday after Donald Trump unexpectedly postponed the introduction of the promised 50% tariffs on goods from the European Union. The move only increased uncertainty around the former US President's trade strategy and caused instability in the investment climate.
Morning surge: futures jumped up
After the holiday weekend in the US and UK, the morning session on Asian markets began with growth in futures: Wall Street indices and the British FTSE showed a noticeable rise. Nasdaq and S&P 500 added 0.9% each, while FTSE futures strengthened by 0.87%. This momentum was caused by Trump's change of position, who postponed the possible introduction of tariffs to July, setting a new key date - July 9.
Not everyone is on board: Asia and Europe have cooled their ardor
Despite positive signals from the American and British fronts, the global mood remained mixed. The MSCI Asia-Pacific ex-Japan stock index fell by 0.55%. European EUROSTOXX 50 futures also fell, albeit slightly, by 0.15%.
All eyes on Nvidia
Investors are preparing for the key event of the week: on Wednesday, Nvidia, the flagship company in the field of artificial intelligence, will publish its quarterly results. First-quarter revenue is expected to show an impressive increase of about 66%. This could seriously affect market sentiment, given Nvidia's key role in the tech sector.
The Fed and inflation: Friday will provide an answer
In addition to corporate reports, market participants are closely watching the upcoming speeches of the US Federal Reserve. The week will conclude with the release of the core PCE price index, one of the main benchmarks for assessing inflation, which could provide clues to the Fed's next steps on interest rates.
Subtle losses signal continued uncertainty
Asian equities slipped on Tuesday, reflecting persistent investor hesitation in the face of global economic ambiguity. Japan's Nikkei edged down by 0.1%, while Hong Kong's Hang Seng dropped 0.18%. The CSI300 index, which tracks China's leading blue-chip stocks, fell a sharper 0.56%.
Bond yields pull back after last week's surge
In Japan, ultra-long government bond yields dipped slightly, retreating from historic highs triggered by a bond market sell-off the previous week. This mirrors a global trend, as growing fiscal deficits — particularly in developed economies like the U.S. and Japan — continue to stoke investor anxiety.
Treasury yields steady but risks remain
U.S. bond yields held relatively steady on Tuesday. The 2-year Treasury note yielded 3.9787%, while the benchmark 10-year stood at 4.4773%. Market watchers remain on alert, however, as speculation over future interest rate moves persists.
Dollar losing ground — longest slide in years
The U.S. dollar struggled to find support, on track for a fifth consecutive monthly decline — its longest losing streak since 2017. The euro hovered near a monthly high at $1.1379, while the Japanese yen held steady at 142.84 to the dollar.
Gold regains shine amid currency doubt
As confidence in the dollar wanes, investors are turning to alternatives like gold. Although prices slipped slightly by 0.3%, the precious metal remains near all-time highs, with the latest trading at $3331.79 per ounce.
Oil Slides as Markets Eye OPEC+ Meeting
Oil prices dipped on Tuesday, with traders closely watching the upcoming OPEC+ summit amid speculation that the group could opt to raise output levels once again. The prospect of increased supply has started to erode recent price momentum.
Brent crude futures slipped by 0.22%, settling at $64.60 per barrel. U.S. benchmark WTI dropped 0.33%, reaching $61.33.
UK markets poised for a dramatic return
After a long holiday weekend, British markets are gearing up for a high-energy comeback. Driving the excitement is Donald Trump's unexpected decision to backtrack on imposing a 50% tariff on EU imports — a move that sparked a rally in futures during Asian trading hours.
FTSE futures jumped, and U.S. markets pointed to a strong open after a prior session closure due to national holidays.
Volatility undermines confidence
The latest U-turn in U.S. trade policy underlines the unpredictability that continues to haunt global investors. Each sudden shift erodes trust and reinforces a broader narrative of instability surrounding U.S. economic leadership.
A losing streak that won't quit
Tuesday brought no relief to the U.S. dollar, which hovered near its lowest point in a month. The greenback is now poised for its fifth consecutive monthly drop — the longest stretch of losses since 2017 — despite the temporary lull in tariff threats from Washington.
Market spotlight shifts to midweek catalysts
With Tuesday offering few key data releases, investor focus has turned to what lies ahead. Chief among them is Nvidia's earnings report on Wednesday. The AI giant is expected to post a staggering 65.9% revenue growth for the first quarter.
Nvidia's China strategy under scrutiny
Traders will be watching not just the topline numbers, but also how Nvidia is navigating tightening U.S. export controls. Sources say the company is preparing to launch a new AI chip tailored for China — significantly cheaper than the restricted H20 model — with full-scale production slated for June.
Fed voices and inflation data ahead
Beyond corporate earnings, the market is listening for any fresh clues from Federal Reserve officials speaking throughout the week. On Friday, the core Personal Consumption Expenditures (PCE) index — a key inflation gauge — could further influence expectations for future interest rate moves.
Central bankers converge in Tokyo
Meanwhile, in Tokyo, global monetary policymakers gathered for a two-day conference hosted by the Bank of Japan and its affiliated think tank. The discussions center on two persistent challenges: sluggish economic growth and stubbornly high inflation. Central bank leaders, including the Fed, are weighing how to strike a delicate balance between supporting recovery and keeping prices under control.
