US and European Futures Increase on Tariff Speculation
US and European stock-index futures have increased on indications that President Donald Trump’s upcoming tariffs might be more nuanced than earlier anticipated.
Futures for the S&P 500 and Euro Stoxx 50 saw gains, alongside rising equities in China, although a wider index of Asian shares experienced a slight decline. The yield on 10-year US Treasury bonds also increased, while the dollar remained stable and the yen fell in value.
Improved Market Sentiment Amid Tariff Details
Market sentiment has improved with reports suggesting that the next phase of US tariffs, set to be announced on April 2, will be more targeted compared to the broader global approach Trump had considered. However, market participants are still anxious given warnings from officials in China and Australia about potential major disruptions to the global economy as a result of US trade policies.
Khoon Goh, head of Asia research at ANZ Group Holdings Ltd, commented, “The initial news regarding focused tariffs has been well-received during early trading in Asia, but there remains considerable tension as we approach next week’s announcement. Unforeseen developments could arise, or Trump might imply a tougher stance this week, making it challenging for markets to adjust to the risks involved.”
Tariff Exemptions and Economic Impacts Expected
According to officials, while Trump will announce broad reciprocal tariffs on certain countries or regions, some will be excluded. Currently, the administration does not plan to reveal any specific sector tariffs during the same event, contrary to Trump’s previous hints.
Australian Treasurer Jim Chalmers indicated that the new US policies could have a “seismic” effect on the global economy, while Chinese Premier Li Qiang stated the nation is preparing for “shocks that exceed expectations.”
China’s Stock Gains and Global Economic Concerns
Chinese stocks rose on Monday, buoyed by news that Ant Group, backed by Jack Ma, has utilized domestically produced semiconductors to create methods for training AI models that could reduce costs by 20%. A measure of Chinese technology shares in Hong Kong has surged 26% this year, reflecting positive sentiment driven by potential AI growth after DeepSeek launched a new cost-effective large language model.
