Trump Delays EU Tariffs; Investors Cautiously Optimistic Ahead of Confidence and Housing Data
đ World Markets Struggle for Direction
Global equities presented a mixed picture Tuesday as investors digested geopolitical uncertainty and awaited key U.S. economic data. While Wall Street remained closed Monday for Memorial Day, markets elsewhere saw modest movements driven by Trumpâs tariff delay and central bank signals in Asia.
- S&P 500 futures: +1.2%
- Dow Jones futures: +1.1%
- FTSE 100 (London): +0.8%
- DAX (Germany): +0.1%
- CAC 40 (France): -0.1%
President Trump announced a postponement of the threatened 50% tariffs on EU goods to July 9, temporarily easing tensions with Europe and giving markets a reason to rally into Wall Streetâs open.
đ Asia: BOJ Hints at Hike Amid Surging Inflation
Asian stocks were broadly higher, led by:
- Nikkei 225 (Japan): +0.5%
- Hang Seng (Hong Kong): +0.4%
- ASX 200 (Australia): +0.6%
However, Chinaâs Shanghai Composite slipped 0.2% and Taiwanâs Taiex dropped 0.9%.
The big story in Asia came from Japan, where Bank of Japan Governor Kazuo Ueda said the central bank may raise interest rates due to persistent inflation, with rice prices doubling and core inflation now above U.S. and European levels.
Ueda emphasized that policy normalization remains challenging amid uncertainty over global trade policies, subtly referencing Trumpâs tariff stance.
đïž Trumpâs Tariff Delay: Markets Adjust to Familiar Rhetoric
Markets welcomed the tariff delay, but reaction was muted as investors increasingly discount Trumpâs tactics.
âPanic-selling into a Trump pirouette doesnât pay like it used to,â said Stephen Innes of SPI Asset Management. âThe volatility is still there, but like a horror franchise on its fifth sequel, the jump scares are losing their bite.â
The EUâs top trade negotiator reported positive talks with U.S. officials and reaffirmed a July 9 goal for a trade deal â reducing near-term trade risk.
đ Key U.S. Data on Deck
Wall Streetâs reopening Tuesday will be met with two important macroeconomic indicators:
- U.S. Consumer Confidence
- U.S. Home Price Index
These will provide insights into demand resilience and housing market dynamics amid elevated interest rates and political uncertainty.
đŹ Conclusion: Reprieve, Not Resolution
While Trumpâs decision to delay the 50% EU tariff sparked a rebound in U.S. futures, markets are treading carefully. Investors have grown accustomed to policy whiplash and are increasingly focused on underlying fundamentals â like inflation, consumer strength, and global central bank policy.
With key data incoming and trade negotiations ongoing, expect volatility to remain elevated. For now, the market appears to be embracing a wait-and-see posture, bolstered by temporary relief, not lasting clarity.
