Global markets are reacting to a fresh wave of trade tensions and economic data, with notable movements across equities, currencies, and commodities. Here’s a breakdown of the latest developments shaping investor sentiment.

APAC Stocks Gain Amid Trade Uncertainty

Asian markets traded higher as investors responded to US President Trump’s decision to delay tariffs on Canada and Mexico for another month. The temporary relief helped support risk appetite, leading to gains in major indices across the region.

However, a new 10% tariff on all Chinese exports to the US officially took effect after the previous deadline expired. The move reignites trade tensions between the world’s two largest economies, adding uncertainty to global markets.

In response, China announced countermeasures against US imports, implementing:

• 15% tariffs on coal and LNG
• 10% tariffs on oil, agricultural machinery, and certain autos

These retaliatory tariffs could add pressure on US exporters, particularly in the energy and agriculture sectors.

European Markets Struggle After Monday’s Losses

European stocks are set for a slightly lower open, with Euro Stoxx 50 futures down 0.1%, reflecting caution among investors. This follows a 1.3% decline in European markets on Monday, weighed down by global trade concerns and economic uncertainty.

Currency Markets: USD Strengthens Amid Chinese Retaliation

The US Dollar Index (DXY) strengthened as China announced its counter-tariffs, driving demand for safe-haven assets. As a result:

• EUR/USD dropped below 1.03
• GBP/USD (Cable) slipped under 1.24

With trade tensions escalating, currency markets remain volatile, and investors will closely watch upcoming US economic data for further direction.

Key Events to Watch

Markets will be paying attention to a range of economic indicators and central bank updates, including:

• US JOLTS Job Openings (a key labor market indicator)
• New Zealand HLFS Jobs Report
• Riksbank Minutes (Sweden’s central bank policy insights)
• Speeches from Fed’s Bostic & Daly
• UK government bond supply auction

Earnings Spotlight: Tech Giants and Global Brands Report

This week is packed with major corporate earnings, with reports from leading companies across multiple sectors. Some of the most anticipated releases include:

• Financials: UBS, BNP Paribas, Intesa Sanpaolo, BMPS
• Tech: AMD, Google (Alphabet), Snapchat, Paypal, Spotify
• Consumer & Retail: Chipotle, PepsiCo, Estee Lauder
• Healthcare: Pfizer, Regeneron, Amgen, Merck
• Energy & Industrials: Marathon Petroleum
• Automotive: Ferrari
• Telecom & Consumer Goods: Vodafone, Diageo, Infineon

Investors will be closely analyzing these reports for insights into corporate earnings growth, consumer demand, and the impact of global economic conditions.

Markets remain on edge as trade tensions between the US and China escalate once again. While APAC stocks showed initial resilience, European futures suggest a more cautious tone. Meanwhile, the strengthening USD and upcoming economic data could set the stage for further market volatility.

With a packed earnings calendar, investors will be looking for corporate outlooks that could shape sentiment in the coming weeks. Stay tuned for more updates as global markets react to these key developments.