Global shares mostly gain as uncertainty over US tariffs persists
On Monday, global markets showed a generally positive trend with investors closely monitoring the ongoing negotiations around U.S. President Donald Trump’s tariffs. While futures for the S&P 500 decreased by 0.3% and the Dow Jones Industrial Average dropped by 0.2%, European markets saw modest gains.
Germany’s DAX increased by 0.2% to reach 22,294.34, France’s CAC 40 rose by 0.4% to 7,568.75, and Britain’s FTSE 100 advanced by 0.3% to 8436.78, marking a slight recovery amidst prevailing uncertainties.
In Asia, market performances were mixed. Despite Beijing’s efforts to stimulate the economy, Chinese shares slipped, largely due to the unclear status of trade talks between the United States and China. Trump’s comments of active negotiations with China seem to contrast with statements from the Chinese and U.S. Treasury Secretary Scott Bessent, indicating that talks had not commenced.
Hong Kong’s Hang Seng Index remained nearly unchanged at 21,971.96, while the Shanghai Composite Index fell by 0.2% to 3,288.41. Meanwhile, Tokyo’s Nikkei 225 gained 0.4%, reaching 35,839.99, and South Korea’s Kospi index remained almost stable at 2,548.86.
In Australia, the S&P/ASX 200 increased by 0.4%, closing at 7,997.10, and Taiwan’s Taiex saw a stronger gain of 0.8%. The overall positive trend in these regions could be attributed to hopes related to tariff negotiations.
Last week concluded with Wall Street experiencing a winning streak, especially propelled by Big Tech stocks. The S&P 500 saw an increase of 0.7%, ending a significant three-day rally and moving within 10.1% of its record high set earlier in the year. Technological gains, led by Nvidia, contributed to the Nasdaq composite’s market-leading increase of 1.3%, whereas the Dow Jones Industrial Average reported a modest 0.1% rise.
Market heavyweights played crucial roles in these gains. Alphabet’s shares climbed 1.7% following the announcement of a 50% profit increase for 2025’s early months, surpassing analyst expectations. Nvidia’s 4.3% rise also significantly bolstered the S&P 500. However, Intel fell by 6.7% despite releasing better-than-expected early-year results.
The bounce in stock markets last week reflects more than solid policy actions; it stems from perceived de-escalation, according to Stephen Innes of SPI Asset Management. The idea of Trump potentially rolling back tariffs offers hope of averting a recession feared by many investors as a result of the ongoing trade war.
The tariff negotiations remain a complex matter. While Trump suggests new trade deals may materialize soon, he also indicates challenges in coordinating all necessary meetings, creating continued uncertainty. This ongoing tension affects businesses across various industries, making it difficult for companies to provide clear financial forecasts for the year ahead.
Further complicating the economic landscape is the impact of fluctuating tariffs on consumer behavior. Reports indicate that U.S. consumer sentiment sank in April, though not by as much as anticipated, demonstrating the highest three-month percentage decline in expectations since the 1990 recession.
Meanwhile, in commodity markets, U.S. benchmark crude oil decreased marginally by 2 cents to $63.00 per barrel during electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, also saw a minor decline of 8 cents, reaching $65.72 per barrel.
Currency markets also responded to these developments. The U.S. dollar dipped slightly to 143.59 Japanese yen from its previous 143.60 yen, while the euro decreased to $1.1353 from $1.1366.
The ongoing negotiation dynamics and market responses underscore a balancing act of hope and management of narratives, as business leaders, investors, and policymakers continue to navigate the complexities of global trade and economic prospects.
