📆 Thursday, May 29
► European markets trade higher after a volatile week + tariff hopes
A US court ruling blocking (or seeking to block) Trump-era tariffs provided short-term relief for investors navigating a turbulent trading environment. The Stoxx 600 climbed 0.35%, led by the French CAC 40 (+0.75%) and the German DAX (+0.35%). The FTSE 100 was unchanged. Automotive and export-oriented stocks reacted positively. Thyssenkrupp saw its share price jump by over 7% due to restructuring measures, while Zealand Pharma led the gains in the healthcare sector. Nevertheless, sentiment remained cautious amid rising political risks and skepticism over the longevity of the EU tariff breaks and whether the court ruling will be respected by the Trump administration.
► US futures benefit from tariffs being in limbo and Nvidia earnings boosting AI optimism.
The S&P 500 advanced 0.9%, while Nasdaq 100 futures surged 1.3% boosted by Nvidia blockbuster quarter and more importantly optimistic forecast despite China concerns. The chipmaker’s stock rose 6% premarket, and peers like Broacom, AMD, Marvell, ARM, and Super Micro Computer jumped more than 2.5%. The broader market received an even stronger boost from a federal court ruling that struck down Trump’s “reciprocal tariffs”. Still, 10-year Treasury yields edged to above 4.5% (+2.5 bps), and the 30-year yield climbed above 5%, reflecting ongoing deficit and inflation concerns. SmartTrader chief analyst Robert Lindner said that the market is becoming increasingly skeptical as to whether the court ruling actually means that the tariffs will be dropped, leading to uncertainty – we are already seeing exactly that clearly in the US pre-market at the moment, which among other things has even led to a positive development in gold prices, for example.
► Asian equities rose as traders digested Nvidia results and bond auction outcomes.
The Nikkei 225 gained +1.9%, buoyed by AI sector momentum. South Korea’s Kospi rose +1.9%, while China’s CSI 300 rose 0.59%. However, trade uncertainty remains and investors will watch closely how the Trump administration will react to the court's ruling. India’s Sensex (+ 0.39%) and Hong Kong’s Hang Seng (+ 1.35%) also gained but saw similar to the other Asian indices also some profit-taking. Sentiment across Asia was cautiously positive as investors awaited more guidance from the Federal Reserve and upcoming earnings, particularly in the tech space. Nvidia's strong AI related earnings and optimistic forecast also boosted tech / AI stocks in Asia.
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