1 week ago
47
European stock markets are set to soar at Monday's open, as investors parse news on a U.S. tariff exemption for some tech items while earnings season kicks into gear.
U.S. President Donald Trump's extreme and fast-changing tariff policy has led to one of the most volatile periods on record for global equities. After a strong start to the year in which it had been outperforming U.S. markets, the pan-European Stoxx 600 index is down 8.83% in April so far, while Wall Street's S&P 500 has lost 4.43%.
Stoxx 600 index.
Currency and bond markets have also been swept up in the action, with the euro climbing to its highest level against the U.S. dollar for more than three years and the yield on the U.S. 10-year Treasury jumping from 3.99% at the start of the week to 4.49% by Friday.
Meanwhile, investors must also contend with the start of first-quarter earnings season this week, with companies now facing a hugely uncertain trade environment. In Europe, luxury giant LVMH will report after the market close. Stateside, investment bank Goldman Sachs will report.
It is relatively quiet on the data front, but inflation figures will be released in the coming days ahead of the European Central Bank's April meeting on Thursday.
Asia-Pacific markets gained on Monday, as U.S. stock futures rose.
Goldman Sachs lowers oil forecast for 2025 and 2026
Goldman Sachs forecasts a decline in oil prices this and next year on the back of the rising risk of a recession and higher supply from the OPEC+ group.
The investment bank expects the Brent Crude to edge down to $63 a barrel through the end of this year and $58 next year. Meanwhile, it expects the West Texas Intermediate to average at around $59 a barrel for the rest of this year and $55 in 2026.
Oil prices fell Monday on the back of uncertainties on the rollout of U.S. President Donald Trump's tariff rollout.
Brent Crude fell 0.37% to trade at $64.52 per barrel as of 11.35 a.m. Singapore time, while WTI dropped 0.39% to $61.26.
— Amala Balakrishner
Asian tech giants climb after Trump's pause on consumer electronics tariffs
Technology stocks in Asia-Pacific climbed Monday after U.S. President Donald Trump paused tariffs on phones, computers and consumer electronics.
Taiwan's Hon Hai Precision Industry - which assembles iPhones for Apple - was up 4.46% as at 10 a.m. Singapore time.
Over in Japan, gains were led by Nvidia supplier Advantest Corp, which added 3.89%, and SoftBank Group, which was up 2.29%.
Meanwhile, South Korean parts maker LG Innotek, which gets a substantial chunk of its revenue from Apple, was last seen up 7.26%.
Over in Hong Kong, the best performers were Nio which surged 6.33%, Alibaba which gained 5.73% and Xpeng which advanced 5.6%.
— Amala Balakrishner
There's still 'mass uncertainty' despite Trump tariff exemption being 'right move,' according to Dan Ives
While the Trump administration's move to exempt smartphones, computers and semiconductors, among other electronic devices and components, from "reciprocal" tariffs may have been a win for Big Tech, the market could still be facing "mass uncertainty" around the president's tariff policy, says Wedbush analyst Dan Ives.
"The White House made the right move in our view as tech leaders and the overall tech industry knew that if these tariffs went into effect it would essentially be a shut off valve for getting products to the US consumers," Ives wrote in a note dated Sunday.
"[B]ut still there is mass uncertainty, chaos, and confusion about the next steps ahead with all focus on China tariff negotiations being front and center and any progress on this game of high stakes poker between Beijing and DC being crucial to the markets and the economy this week," he continued.
— Sean Conlon
English (US)