📆 Tuesday, April 1
► European markets rose despite looming U.S. tariffs, as the Stoxx 600 Index rose more than 1%, led by gains in pharmaceutical stocks. Novo Nordisk climbed 3.1% after a nine-day losing streak, while Bavarian Nordic gained 1.8% following FDA approval of its freeze-dried vaccine formulation. Pharmaceuticals are also benefiting from JPMorgan analysts saying that the impact of US tariffs on the sector would be “manageable.” Eurozone inflation eased to 2.2% in March, slightly below estimates, while the unemployment rate improved to 6.1%. Goldman Sachs cut its 12-month target for the Stoxx 600 from 580 to 570, citing weaker growth forecasts. Meanwhile, Eurozone Manufacturing PMI showed early signs of recovery, bolstering cautious optimism.
► U.S. markets remained under pressure ahead of President Trump’s highly anticipated tariff announcement on April 2 but were also able to extend yesterday recovery. S&P 500 futures are trading slightly higher (+0.15%), and Nasdaq futures are trading flat. The 10-year Treasury yields fell to 4.18% (-6 bps) amid ongoing safe-haven buying. Concerns about tariffs continued to weigh on market sentiment, as Trump's plan targets important sectors such as the automotive, steel, pharmaceutical and semiconductor industries.
► Asian markets displayed mixed performance as investors assessed global risk factors and regional economic data. China’s Shanghai Composite rose 0.38%, supported by a Caixin Manufacturing PMI increase to 51.2, its highest in four months. Japan’s Nikkei 225 declined slightly by 0.15%, affected by the ongoing manufacturing contraction. Hong Kong’s Hang Seng Index added 0.38%, ending a two-day losing streak. Australia’s ASX200 gained 1.04% following the RBA’s decision to hold interest rates at 4.1%.
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