Global markets have been in flux this week, with a mix of optimism and concerns shaping investor sentiment. While Wall Street’s recent slide into a technical correction weighed on global equities, APAC stocks managed to rebound as risk sentiment gradually improved. Here’s a breakdown of the latest market movements and key developments investors should watch.

APAC Stocks Rebound Amid Tariff Concerns

APAC equities mostly traded in positive territory, showing resilience despite a negative lead from Wall Street. The S&P 500 slipped into a technical correction following tariff concerns after US President Donald Trump threatened a 200% tariff on EU wine and champagne. However, improved risk sentiment helped lift Asian stocks, reflecting investor optimism that geopolitical tensions and trade disputes could be managed.

Trump Stands Firm on Tariff Decisions

US President Trump reiterated his stance on tariffs, stating that he would not change his mind on the April 2nd tariff implementation. He also emphasized that he would not compromise on tariffs related to Canadian metals and other trade disputes, asserting that the US does not rely on Canada’s cars, energy, or lumber. These statements continue to add uncertainty to trade negotiations and global economic relations.

Putin Supports Ceasefire with Conditions

Russian President Vladimir Putin expressed support for a ceasefire but emphasized that it must lead to a final settlement addressing the root causes of the conflict. His comments suggest that while diplomatic efforts are in motion, achieving a long-term resolution remains complex.

US Senate Aims to Keep Government Open

In the US, Senate Minority Leader Chuck Schumer announced that he would vote to keep the government open, preventing a potential shutdown. This move could provide some short-term relief for investors concerned about political uncertainty in Washington.

European Markets Set for a Positive Open

European equity futures indicate a stronger start, with Euro Stoxx 50 futures up 0.5%. This follows a decline of 0.6% in the cash market on Thursday. The recovery in futures suggests that investors are looking past recent losses and focusing on upcoming economic data and corporate earnings.

Key Events to Watch

Looking ahead, several major economic releases and corporate earnings reports are set to influence market sentiment:

• Economic Data: German Wholesale Price Index, UK GDP, US University of Michigan (UoM) Consumer Sentiment Survey.
• Geopolitical Developments: President Trump’s executive orders, US government funding expiration, and potential policy comments from European Central Bank’s Cipollone.
• Credit Ratings: Fitch is set to review France’s credit rating, which could impact European financial markets.
• Earnings Reports: Major companies reporting include BMW, Daimler Truck, Bechtle, and Li Auto, with investors closely watching their performance and guidance.

As global markets navigate these key events, traders and investors will be monitoring geopolitical developments, economic indicators, and corporate earnings for clues on future market direction. Stay tuned for further updates as we track these evolving trends.