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A look at the day ahead in European and global markets.
U.S. futures are gradually recovering, approaching levels not seen since early April. Meanwhile, the dollar is facing significant challenges as it struggles to regain its footing, heading toward one of its largest monthly declines in years.
The currency has weakened as concerns grow over tariffs potentially impacting U.S. economic growth, productivity, and its overall market stability. Additionally, the dollar’s status as a safe haven is being reevaluated amid erratic communication from the Trump administration, which is contributing to market turbulence.
With 1,362 days remaining until the conclusion of his term in 2029, President Trump announced a reversal on certain automotive tariffs this Tuesday. These tariffs will not be stacked onto existing import duties. However, this measure has been met with skepticism, resulting in only slight increases in European and U.S. futures during the Asia trading session.
Investors are eager for tangible evidence of progress in reducing the extensive tariffs imposed by the U.S. and China, the two largest economies globally, since their introduction in April. Treasury Secretary Scott Bessent remarked that the responsibility for de-escalation lies with China, which has yet to initiate economic stimulus, anticipating that Washington will make the first move.
Trump’s concessions to automakers could indicate he is attentive to the concerns of business leaders. He is scheduled to meet with over two dozen executives from major firms such as Nvidia, Toyota, SoftBank, and Hyundai at the White House on Wednesday.
Prior to this, Trump plans to hold a rally in Michigan on Tuesday to commemorate his first 100 days in office. Meanwhile, normalcy is returning to Spain and Portugal after a significant power outage on Monday, although the cause remains uncertain.
Markets have shown minimal reaction following the announcement that Prime Minister Mark Carney’s Liberal Party secured a minority government in Canada, as projected by television networks.
On Tuesday, the Euro zone confidence indicators, along with inflation data from Spain and Belgium, are expected to be released. Additionally, earnings reports are anticipated from major firms like HSBC, Adidas, and Logitech.
General Motors and Visa are also set to report results during U.S. trading hours, while significant earnings reports from tech giants such as Apple, Amazon, Microsoft, and Meta are expected later in the week.
Key developments that could influence markets on Tuesday include:
- Earnings: Deutsche Bank, HSBC, Amundi, Adidas, BP, Logitech, General Motors, Visa
- Economics: Euro zone confidence, inflation data from Spain and Belgium
For those trying to stay informed on tariff developments, a new daily news digest has been introduced to summarize the critical headlines influencing global trade.
Source
finance.yahoo.com