Global markets delivered a mixed performance on Tuesday, following U.S. President Donald Trump’s unexpected decision to postpone his threatened 50% tariffs on European Union imports.
The sudden shift in trade policy temporarily boosted Wall Street and London futures but failed to stabilize broader investor sentiment, which remains fragile amid ongoing concerns over trade tensions and economic uncertainty.
U.S. and UK markets reopened after Monday’s holiday, with Nasdaq and S&P 500 futures climbing 0.9% each, while London’s FTSE futures added 0.87%. The gains reflect optimism sparked by Trump’s move to delay the punitive EU tariffs until July 9, easing fears of an immediate trade escalation.
However, the rally was short-lived in other regions. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.55%, while Europe’s EUROSTOXX 50 futures dipped 0.15%. Japan’s Nikkei edged 0.1% lower, Hong Kong’s Hang Seng dropped 0.18%, and China’s CSI300 slid 0.56%.
While the delay in EU tariffs has provided a short-term boost to futures markets, underlying concerns about trade relations and upcoming economic indicators continue to weigh on investor sentiment, said Aaron Chwee, Head of Wealth Advisory at OCBC.
Investors are eyeing upcoming earnings from Nvidia, the AI market leader, expected to post a 65.9% surge in Q1 revenue on Wednesday. In addition, speeches from key Federal Reserve policymakers and Friday’s release of the core Personal Consumption Expenditures (PCE) price index could offer fresh clues on the U.S. interest rate outlook.
Bond markets remained under pressure. Super-long Japanese government bond yields fell, reversing some of last week’s record highs. Globally, long-end bond yields have surged, driven by rising fiscal deficit fears in economies like the U.S. and Japan. U.S. Treasury yields held steady, with the 2-year at 3.9787% and the 10-year at 4.4773%.
Meanwhile, the U.S. dollar continued its slide, heading for a fifth consecutive monthly loss — the longest losing streak since 2017. The euro held near a one-month high at $1.1379, and the yen was steady at 142.84 to the dollar.
Erratic U.S. policymaking and fiscal stress suggest a weaker dollar could become the new norm, noted David Meier, an economist at Julius Baer. “The dollar may be losing its traditional safe-haven appeal.
Gold prices, a favored refuge in uncertain times, slipped 0.3% to $3,331.79 an ounce after reaching record highs earlier this year. Oil prices also eased, with Brent crude down 0.22% to $64.60 per barrel and U.S. West Texas Intermediate crude off 0.33% to $61.33. Investors await signals from the upcoming OPEC+ meeting, which could bring a decision on boosting crude output.
WHAT YOU SHOULD KNOW
U.S. President Donald Trump’s sudden decision to delay a planned 50% tariff on European Union imports has caused temporary market relief but has also reinforced global investor anxiety over the unpredictability of U.S. trade policy.
This has led to mixed reactions in global markets, uncertainty around economic indicators, and weakening confidence in the U.S. dollar and assets. This instability may affect future investment decisions, currency trends, and global economic momentum.
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