
US futures indicated that Wall Street would begin lower on Monday as investors remained on edge due to the most recent round of threats in the US tariff battles, while some hoped that President Donald Trump’s rhetoric would ultimately prove to be the main factor. Both Nasdaq and S&P 500 futures saw a 0.3% decrease. This week, the major banks lead the pack on Tuesday as earnings season begins.
LSEG IBES projects that S&P businesses would raise their earnings by 5.8% compared to the same period last year, which is less than the 10.2% jump that was anticipated on April 1. MSCI’s most comprehensive global stock index fell 0.1%, while the pan-European STOXX 600 index fell 0.4%.
Other regional indices fell as well, except the UK’s FTSE 100.FTSE, which increased by 0.4%. Trump said on Saturday that, despite ongoing lengthy discussions, he will put a 30% tax on the majority of imports from the EU and Mexico starting on August 1. Germany’s finance minister stated that the EU will continue to push for a negotiated settlement and prolong the moratorium of responses to US tariffs until early August.
After reversing to 4.60% on Monday, German 10-year government bond rates momentarily reached their highest level since early April. The relationship between yields and price is inverse. For all of us following the trade narrative, it remains an emotional rollercoaster, to borrow the most overused cliché in the book.
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