Global markets are adjusting their footing today in response to the latest pivot from former U.S. President Donald Trump, who has announced a 90-day pause on tariffs—injecting a dose of optimism into European equities while leaving U.S. futures on a softer note.

European Markets Climb, U.S. Futures Hesitate
European bourses are on the rise as investors cheer the tariff delay, viewing it as a potential cooling-off period in global trade tensions. The relief rally in Europe, however, hasn’t been mirrored across the Atlantic, where U.S. futures are trading with a more cautious tone. Investors in the U.S. appear to be taking a wait-and-see approach, especially ahead of key economic data.

Dollar Dips as Tariff Relief Sinks In
The U.S. dollar is on the back foot against most major currencies, as markets digest the implications of Trump’s walk-back. The move is seen as a slight easing of geopolitical risk, leading to a modest pullback in safe-haven demand for the greenback.

“Beautiful” Trade for Bonds Hits a Speed Bump
It was a strong morning for sovereign bonds, with U.S. Treasuries and UK Gilts initially catching a strong bid in what’s been dubbed a “beautiful” trade. However, that momentum is now fading. German Bunds haven’t joined the rally, staying stuck in negative territory—perhaps weighed down by localized inflation concerns and weaker demand.

Commodities Mixed: Crude Lags, Metals Shine
The commodities complex is split today. Crude oil remains subdued, with prices under pressure from soft demand signals and ongoing inventory concerns. In contrast, base metals are seeing strong gains, driven by upbeat sentiment out of Asia and hopes for stabilized global trade. Gold, meanwhile, continues to hold onto its recent gains, benefitting from lower yields and dollar softness.

Key Data and Central Bank Speeches on Deck
Looking ahead, markets are bracing for a flurry of economic data and central bank commentary. On the docket:

• U.S. CPI and Jobless Claims
• China’s M2 Money Supply
• Central bank speakers from around the world, including:
  • BoE’s Breeden
  • Fed’s Logan, Bowman, Schmid, Goolsbee, and Harker
  • SNB’s Tschudin and Moser
• Plus, supply coming to market from the U.S. Treasury