Global markets continue to navigate uncertainty as APAC stocks traded mixed following a choppy performance on Wall Street. Investor sentiment remains fragile, with attention shifting towards tariff policies and geopolitical developments, particularly the Ukraine ceasefire talks.

Tariff Impact and Market Reactions

The U.S. has officially imposed 25% tariffs on steel and aluminum, with no exemptions granted except for Canada, where the tariff was reduced from 50% to 25%. This move has reignited concerns about trade tensions, influencing equity and commodity markets across the board.

Ukraine Ceasefire Talks Progress

Amid ongoing geopolitical tensions, Ukraine has expressed readiness to accept a U.S.-backed proposal for an immediate and interim 30-day ceasefire. The development, if successfully implemented, could provide a much-needed respite to global markets, particularly in energy and commodity sectors.

European Markets Signal Recovery

European equity futures suggest a positive open, with the Euro Stoxx 50 futures up 1.2% in pre-market trade. This follows a challenging Tuesday session where European stocks closed with losses of 1.4%. The rebound indicates investor optimism as markets assess economic data and policy signals.

FX Markets Remain Subdued

Currency markets have remained relatively contained, with the U.S. Dollar Index (DXY) hovering around 103.50. The EUR/USD pair is holding steady just above the 1.09 mark, while the Japanese yen is showing marginal underperformance against its peers.

Key Events to Watch

Looking ahead, investors will closely monitor several high-impact events and economic indicators:

• Economic Reports: ECB Wage Tracker, U.S. CPI data
• Central Bank Announcements: Bank of Canada (BoC) and National Bank of Poland (NBP) policy decisions
• Energy Updates: OPEC Monthly Oil Market Report (MOMR)
• Speeches from Key Policymakers: RBA’s Jones, ECB’s Lagarde, Villeroy, Escrivá, Nagel, Lane, and BoC’s Macklem
• Debt Issuances: U.K., Germany, and U.S. bond supply updates
• Corporate Earnings: Major companies reporting include Adobe, Brenntag, Puma, Rheinmetall, Porsche, and Inditex.

With global markets at a crossroads, traders and investors alike will remain vigilant as they navigate policy shifts, economic indicators, and geopolitical uncertainties in the coming days.