Tensions over U.S. tariff threats rattled global markets on Monday. U.S. and European stock futures weakened, sending ripples through Asia as investors grew uneasy. Although many still hope President Trump’s threats are mostly rhetorical, anxiety is mounting.
🔹 Trump Ups the Ante: New Tariffs from August
On Saturday, Donald Trump announced plans to impose 30% tariffs on most imports from the European Union and Mexico, starting August 1. While Brussels temporarily suspended retaliation and called for continued negotiations, Germany’s finance minister warned that Europe will “hit hard” if tariffs are enacted.
Analysts note that investors have learned to live with Washington’s unpredictable trade policies. Taylor Nugent from National Australia Bank said, “It’s unclear whether the market’s muted reaction shows resilience or resignation.”
📉 Asia on Edge, Wall Street Awaits Earnings
The MSCI Asia-Pacific index (excluding Japan) held flat, while Tokyo’s Nikkei dipped 0.3%. In contrast, China’s CSI 300 index rose 0.3% after June exports unexpectedly jumped 5.8% year-over-year — even though shipments to the U.S. fell nearly 10%.
In Europe:
🔹 EURO STOXX 50: −0.6%
🔹 DAX: −0.7%
🔹 FTSE futures: −0.1%
U.S. futures also declined, with S&P 500 and Nasdaq contracts falling about 0.4%, ahead of the upcoming earnings season, which kicks off Tuesday with major banks reporting results.
According to LSEG IBES, S&P 500 companies are expected to report a 5.8% year-over-year earnings increase — down from the 10.2% forecast in April. Bank of America strategists warn that with weak revenue projections, companies might only beat expectations by two percentage points, below the long-term average of three and far from last quarter’s six-point beat.
📊 Safe Havens in Focus: Bonds and Gold Climb
With market nerves rising, investors turned to safer assets. The yield on 10-year U.S. Treasuries held around 4.41%, while short-term futures suggest limited rate cuts in the coming year.
President Trump is ramping up pressure on Fed Chair Jerome Powell, pushing for faster monetary easing. White House economic adviser Kevin Hassett hinted that Trump might consider replacing Powell, especially amid controversy over the Fed’s $2.5 billion headquarters renovation.
🔍 Eyes on Inflation and Consumer Spending Data
Markets are now watching Tuesday’s consumer price index report, which could signal early signs of tariff-driven inflation. Retailers are still selling pre-tariff stock, and some are absorbing extra costs to maintain sales. Later this week, wholesale and import price data will offer insights into rising supply chain expenses, while new retail sales data will show whether consumers are still spending.
💱 Dollar Steady, Commodities Mixed
On currency markets:
🔹 Euro down 0.1% to $1.1685
🔹 Dollar down 0.2% against yen to 147.15
🔹 Up 0.2% against the Mexican peso to 18.6710
📈 Gold Back in the Spotlight
Gold climbed 0.1% to $3,359 per ounce, trading just below $3,370 in early Singapore trading. So far this year, gold has gained more than 25%, hitting an all-time high above $3,500 in April.
Spot gold is benefiting from geopolitical uncertainty and sustained central bank demand. Silver is near its strongest level since 2011, while platinum and palladium saw modest declines. Brent crude rose 0.2% to $70.47 a barrel, while U.S. WTI increased 0.1% to $68.55.
President Trump, meanwhile, sent letters to global leaders — including Ursula von der Leyen and Claudia Sheinbaum — outlining potential new tariffs, keeping markets on edge.
#WallStreet , #GOLD , #usd , #TRUMP , #globaleconomy
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