Global markets and euro rise as Trump delays EU tariff decision to July, easing trade tensions temporarily.
In Short:
Global markets rose after Trump postponed EU tariffs, with European stocks climbing to pre-announcement levels. However, concerns about rising debt and tariff impacts on Asian stocks persisted.
Global markets increased on Monday as U.S. President Donald Trump postponed proposed 50% tariffs on European Union goods until July.
The MSCI world shares index rose by 0.2%, and the pan-European stocks index climbed by 0.9%, returning to pre-announcement levels.
Trump’s decision came after European Commission President Ursula von der Leyen requested more time for discussions.
This development highlighted the volatile nature of trade policies, prompting analysts to note a trend of investors reallocating funds from U.S. markets to Europe and Asia amid recession concerns.
Commerzbank remarked on the unpredictability of Trump’s policies, while SEB Research pointed out a mix of factors affecting U.S. asset attractiveness, indicating potential dollar depreciation and rising U.S. interest rates.
Pound strengthens
The dollar fell 0.1% against other currencies, while the euro gained 0.23% to $1.1380. The pound also strengthened by 0.2%.
Monday’s trading volume was lower due to public holidays in the U.S. and Britain.
Concerns over increasing debt levels in developed economies were noted following a Moody’s downgrade of the U.S. credit rating.
In Asia, stocks closed lower, with notable declines in Chinese automobile shares and Apple suppliers amid tariff concerns.
In Japan, the Nikkei 225 rose by 1%, its largest gain in nearly two weeks, influenced by positive news regarding Nippon Steel’s takeover.
Oil prices dipped alongside gold, which retreated from recent highs.
