Equity-index futures retreated and Asian shares edged down in a cautious start to the week after President Donald Trump dialed up trade tensions by announcing a 30% tariff on goods from the European Union and Mexico. Contracts for the S&P 500 fell 0.4% and those for European stocks dipped 0.6%. Asian shares were flat, with small gains in Hong Kong and mainland China. Silver gained to trade near the highest level since 2011. Bitcoin breached $120,000 for the first time. The yen rose against the dollar while bond futures dropped after a report that Bank of Japan officials may consider raising at least one of their inflation forecasts at a policy meeting later this month. Trump’s latest tariff threats are testing the market’s resilience after the US leader ratcheted up trade measures on everyone from Canada to Brazil to Algeria last week. Despite warnings of complacency, investors have so far behaved as if they’re counting on the president to back down, having seen previous U-turns from his administration. The S&P 500 and the MSCI All Country World Index both hit records this month. Financial markets have been struggling with how to price in the on-again, off-again tariff campaign instigated by Trump so far in his second term. While markets responded to the April 2 “Liberation Day” announcements by selling risk assets and even US Treasuries, those moves have now almost all reversed as the president delayed many of his threatened levies. The EU had been trying to conclude a tentative deal with the US to stave off higher tariffs, but Trump’s letter punctured the recent optimism in Brussels. The US president did, however, leave an opening for additional adjustments. The EU is now preparing to step up its engagement with other countries hit by Trump’s tariffs, according to people familiar with the matter. Separately, Trump and his allies stepped up their criticism of the Federal Reserve Chair Jerome Powell’s handling of the expensive renovation of the Fed’s headquarters. Some administration officials are attempting to build a case to remove Powell from the Fed’s Board of Governors. Late on Sunday, Trump repeated his criticism of Powell and said if the Fed chair stepped down, that would be a “good thing.” Deutsche Bank AG strategist George Saravelos said the potential dismissal of Powell is a major and underpriced risk that could trigger a selloff in the US dollar and Treasuries.
If Trump were to force Powell out, the subsequent 24 hours would probably see a drop of at least 3% to 4% in the trade-weighted dollar, as well as a 30 to 40 basis point fixed-income selloff, Saravelos said. Focus will shift to a slew of economic data this week, including China’s gross domestic product report and inflation readings in Europe and the US. The second quarter earnings season is also due to begin this week, with Wall Street expecting the weakest reporting season since mid-2023. It comes at a time that corporate credit ratings downgrades are becoming more frequent. In corporate news, Tesla Inc. plans to poll shareholders on whether to invest in xAI, Elon Musk said after the Wall Street Journal reported SpaceX was prepared to funnel $2 billion into the Grok chatbot developer.
Nikkei -0.02% Hang Seng +0.38% CSI +0.22% Shanghai +0.43% Shenzen +0.10%
Eur$ 1.1675 CNH 7.1712 CNY 7.1702 JPY 147.39 GBP 1.3475 CHF 0.7973 RUB 78.0000 TRY 40.2081 WTI$ 68,62 +0.29% Gold 3,359 +0.10% BTC 121,339 +1.82% ETH 3,046 +1.41%
S&P -0.56% Nasdaq -0.55% EuroStoxx -0.74% FTSE -0.08% Dax -0.88% SMI -0.38%
Macro :
- France’s Macron Raises Defense Budget, Says Europe Under Threat
- Crypto Treasury Firms Swarm Wall Street in SPAC, Merger Boom
- Crypto Treasury Firms Swarm Wall Street in SPAC, Merger Boom
- Vietnam got an early trade deal with Donald Trump. Was it worth it?, Businesses wonder if Hanoi locked in better terms on tariffs by moving quickly — or gave up too much - FT
- Netherlands rations electricity to ease power grid stresses - FT
- U.S. Apparel Imports From China Fell to a 22-year Low in May Amid Trade War Escalation - WWD
- EU to Extend Suspension of Countermeasures to Allow for US Talks
- Iran Says It’s Considering US Offer to Restart Nuclear Talks
- Merz Says 30% US Tariffs Would Hit German Industry to ‘Core’
- Jane Street Deposits $564 Million to Comply With India Order
Keep an eye on :
- ATS AV : AT&S Gets $150 Million Sustainability-Linked Loan from Maybank
- BCP PL : Banco Comercial Says It Complies With MREL Requirements
- BAS GY : BASF Guidance Cut Probably a ‘Realistic Rebase’: Street Wrap
- BPE IM : BPER to Re-Open Offer Period For Popolare Sondrio July 21 to 25
- BPE IM : BPER to Re-Open Offer Period For Popolare Sondrio July 21 to 25
- ILTY IM : Banca Ifis Tendered 92.5% Stake in Illimity as Offer Ends
- BAS GY : BASF Cuts Outlook as US Tariffs Dent Demand for Chemicals
- BAS GY : BASF Cuts Outlook as US Tariffs Dent Demand for Chemicals
- BMRN US : BioMarin Granted FDA Orphan Drug Status for Vosoritide
- EN FP : Orange, Bouygues, Free Explore Carve-Up of SFR, FT Reports
- BNR GY : Brenntag Cuts FY Operating Ebita Forecast, Misses Estimates
- 1211 HK : BYD : BHP Signs MOUs With CATL, BYD on Battery Tech & Electrification
- COOR SS : Coor 2Q Net Sales Beat Estimates
- ACA FP : Credit Agricole Seeks ECB Approval to Raise BPM Stake Above 20%
- BPSO IM : Popolare Sondrio Investors Tendered 58.3% Shares in BPER Bid
- DTE GY : T-Mobile Wins FCC Nods for US Cellular, Metronet Deals (1)
- DRW3 GY : Draegerwerk Maintains FY Net Sales Forecast
- RF FP : Eurazeo in Exclusive Talks to Sell Its Stake in Carambar Maker
- ETL FP : Japan, EU Plan Satellite Network to Cut Reliance on US: Nikkei
- EXO NA : Elkanns Agree to Pay €175 Million in Italy Tax Case (1)
- FireFly IPO : Firefly Aerospace files for an IPO - TechCrunch
- GOOGL US : Google Acquires Windsurf License After OpenAI Deal Fails
- HTRO SS : Hexatronic 2Q Operating Income SEK142M Vs. SEK192M Y/y
- INWI SS : Inwido 2Q Net Sales Miss Estimates
- KESKOB FH : Kesko June Comparable Sales +3.7%
- LIFCOB SS : Lifco 2Q Net Sales Miss Estimates
- LLOY LN : Lloyds in Talks to Buy Fintech Firm Curve for £120M, Sky Says
- MB IM : Mediobanca Reiterates Opposition to Monte Paschi Takeover Bid
- META US : Meta Acquires Voice AI Startup PlayAI, Continuing to Add Talent
- META US : Meta trial becomes test of board culpability over corporate scandals
- NIQ IPO : NIQ Set to Launch $1 Billion-Plus US IPO as Soon as Next Week
- NORION SS : Norion Bank 2Q Operating Profit Beats Estimates
- NOVN SW : NVS: Novartis loses bid to block MSN generic of Entresto, Bloomberg says
- NVDA US : Nvidia CEO Must Avoid Entities Tied to China’s Military: Warren
- ORK NO : Orkla 2Q Adjusted Ebit Beats Estimates
- EFG FP : Eagle Football Says Olympique Lyonnais Is Financially Stable
- Open AI : Altman Says OpenAI to Delay Rollout of Its Open-Weight Model
- ORA FP : Orange, Bouygues, Free Explore Carve-Up of SFR, FT Reports
- PGHN SW : Partners Group Clinches New Techem Deal After Regulatory Hurdle
- RNO FP :How Renault is speeding up car development to match Chinese rivals - FT
- RIO LN : Rio Tinto Wants to Invest More in US Copper Under Trump Tariffs
- SFL IM : Safilo Mulls M&A to Play Role in Consolidation: CEO to Stampa
- SNPS US : China Grants Synopsys Approval for $35 Billion Ansys Takeover
- TSLA US : Musk Suggests Tesla Shareholders Will Vote on xAI Investment
- UCG IM : Italian court confirms UniCredit must exit Russia to complete BPM takeover - FT
- UCG IM : UniCredit to Take ‘Timely’ Steps on BPM After Court Decision
- WBD IM : Webuild Gets New Works Worth About $600M in Saudi Arabia
- WLN FP : Worldline Turmoil Hands Swiss Bourse a $300 Million Headache
- X AI : Elon Musk’s xAI seeks up to $200bn valuation in next fundraising - FT
- X AI : SpaceX to Invest $2 Billion Into Elon Musk's xAI -- WSJ