📆 Monday, May 26
► European markets rallied as investor anxiety eased following President Trump’s decision to delay a planned 50% tariff on European Union goods. The Stoxx 600 surged 1%, with widespread gains across all sectors. Germany’s DAX – consisting of many export oriented components – led the charge, climbing nearly 1.7%, while France’s CAC 40 gained nearly 1.2%. Auto stocks bounced back sharply after last week’s losses, with BMW (+1.1%), Mercedes (+1.6%), and VW (+1.4%) leading the sector higher. The new July 9 deadline rekindled optimism for a negotiated outcome. Swiss and Nordic indices joined the rally, while UK markets were closed for a public holiday.
► US equity futures jumped in off-markets trading, with both the S&P 500 and Nasdaq 100 up over 1%, as risk appetite improved following Trump’s tariff reversal. Though Wall Street remained closed for Memorial Day, futures signaled a strong start into the week following last week’s selloff. Traders shifted focus toward upcoming PCE inflation data (due Friday) and Nvidia’s earnings on Wednesday. The passage of a multi-trillion dollar tax bill continued to stir debate, but Monday’s risk sentiment is notably more constructive. Once again, markets leaned into the now-familiar “buy-the-dip, tariff-delay” setup.
► Asian markets were mixed. The MSCI Asia Pacific Index ended little changed, with pockets of strength in Japan (Nikkei 225 +1.0%) and South Korea (KOSPI +2.0%). In contrast, China and Hong Kong underperformed. The Hang Seng (-1.35%) declined as property names weakened on geopolitical and funding concerns. One standout: Nippon Steel soared 7.4% after a new US-Japan steel partnership was announced. Despite the ongoing tensions, sentiment in the region was (again) cautiously optimistic ahead of key macro updates later in the week.
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