US equity index futures climbed into early Asian trading on Monday after President Donald Trump extendeddeadlineAbout aggressive European tariffs.
The S&P 500 and Nasdaq 100 contract rose after Trump said he agreed to delay the date of 50% tariffs on goods from June 1st to the European Union to July 9th. The dollar fluctuated after falling to its lowest level since December 2023 on Friday. The yen and Swiss franc, the major beneficiaries of Friday’s move, retreated in Asia early on Monday.
The move reflects an increase in market uncertainty, and Trump’s broadside to Europe on Friday is a stern reminder of the president’s volatile policymaking. Trump’s tariff threat on FridayIncludedIf companies including Apple Inc. or Samsung Electronics Co. fail to move production to the US, they collect 25% on smartphones.
“Overall, the good news,” said Rodrigo Catrill, strategist at Sydney’s National Bank of Australia. “But constant threats do not create a good environment for investment and employment decisions.”
Asian stock futures recorded before Trump’s deadline extension fell along Wall Street’s move on Friday, with contracts for stocks in Japan, Australia and Hong Kong all lower contracts. In commodities, oil rose 0.7% and gold fell 0.3% in early trading on Monday.
For capital economics, Trump’s threat to a 50% tariff on the EU from June turns out to be a “negotiation tactic,” and it appears “very unlikely” in a place where tariffs will settle in the long term.
“At this stage there is no tendency to change our practical assumption that EU tariffs will ultimately settle by about 10%, but this highlights the risks and the path to agreement may be rocky,” the company said.
The Friday, which ended on Friday, saw little change to Friday after a trader surged early in the week with a sign that was growingI’m worriedOn the financial effects of Trump’s signature legislative package, which features a new tax credit. The Treasury Department was closed on Monday for holidays.
Investors are also preparing for priority inflation measures for the Federal Reserve, the US personal consumption expenditure price index excluding food and energy, which will be released Friday. AprilreadIt is projected to rise by 0.1% based on consensus expectations.
Signs of other placesPort congestionNorthern Europe and other hubs suggest that trade wars could lead to maritime turmoil around the world, leading to rising shipping costs.
Meanwhile, Japan’s leading trade negotiator Akitagawa has shown his purpose to settle tariff talks in time for a June meeting that allows a partnership between the two countries’ steelmakers, following the president’s surprise pivot, followed by President Trump’s surprise pivot.
Trump announced on Friday partnership Between US Steel Corporation and Japan’s Nippon Steel Corporation, he once said he would maintain the iconic American company in the US, but agreed to provide details otherwise. U.S. Steel stocks rose 21.2%.
Some of the main market movements:
stock
- S&P 500 futures rose 0.8% as of 8:10am Tokyo time
- Hangsen futures fell 0.3%
- S&P/ASX 200 futures fell 0.4%
currency
- The Bloomberg Dollar Spot Index has been largely unchanged
- The euro rose 0.1% to $1.1376
- Japanese yen fell 0.2% per dollar to 142.82
- Offshore yuan was 7.1756 per dollar and barely changed
- The Australian dollar rose 0.2% to $0.6504
Cryptocurrency
- Bitcoin rose 1.3% to $109,076.08
- Ether rose 1% to $2,548.6
Bonds
- Australia’s 10-year yield fell to 4.41% on one base point
merchandise
- West Texas Intermediate Crude rose 0.8% to $62 per barrel
- Spot Gold fell 0.2% to $3,349.45 per ounce
This story was originally featured on Fortune.com.
