📆 Wednesday, May 28
► European shares are trading mixed after the rally on Monday and Tuesday. The Stoxx 600 slipped 0.25%, weighed by weakness in industrials and consumer goods. The DAX fell 0.2%, and the CAC 40 edged down 0.1%, while Italy’s FTSE MIB outperformed (+0.6%) on banking strength. UK's FTSE 100 trades 0.15% lower. Investors paused after Trump’s tariff delay-fueled bounce, with fresh caution creeping in amid Nvidia-related uncertainty and concern that the EU tariff reprieve may prove temporary. The markets are also concerned about the ongoing uncertainty and the contradictory signals from Trump and his continued unpredictable decisions, among others, but also from the central banks.
► US equity futures are little changed following Monday’s (or Tuesday when looking at regular trading) sharp gains. The S&P 500 and Nasdaq 100 are trading near flat as investors turned more cautious ahead of Nvidia's highly anticipated earnings report after the close. A weak 40-year bond auction in Japan renewed concerns over debt sustainability, pushing 30-year US Treasury yields to 4.98% and 10-year yields to 4.47% (+ 4 bp). Risk sentiment becomes increasingly fragile, with markets focused on macro headwinds including tariff risks, elevated US deficits, and the Fed’s rate trajectory. Nvidia’s results are widely expected to determine the short-term direction of the broader tech sector.
► Asian markets were largely rangebound as weak demand in Japan’s bond auction cast a shadow over investor sentiment. The MSCI Asia Pacific Index ended flat (-0.02%), with weakness in growth / tech stocks visible in the performance of the Hang Seng (- 0.53%). However, South Korea's Kospi (+1.25%) had a strong day, Japanese Nikkei was able to end the session flat (Nikkei 225 – 0.0%). A 10bps jump in Japanese 30-year yields rattled regional debt markets. While China remained mixed, traders are watching closely whether AI-chip demand will sustain momentum and lift tech-heavy export economies across the region. The focus now shifts to broader macro prints from the US and in particular Nvidia’s numbers.
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