Markets Surge as Traders Brace for Earnings and Key Jobs Data
Stock markets rose on Tuesday following a generally upbeat session on Wall Street, as investors kept an eye on a hectic week ahead filled with economic reports and corporate earnings announcements that might offer insights into the impact of Donald Trump’s trade strategies.
A month that began with the U.S. President’s “Liberation Day” tariff announcements on April 2 seemed poised for a relatively peaceful conclusion, as various governments prepare to strike agreements aimed at mitigating the impact of these policies.
However, even though there is some hope that the extensive measures might be softened before the 90-day reprieve expires in July, progress seems minimal when it comes to addressing the primary target of these tariffs — China.
Last week’s reports indicated that China might consider exempting certain U.S. products from retaliatory tariffs, yet Beijing stated that there are currently no ongoing talks between the two major economies.
On Monday, an official refuted Trump's assertions about having conversed with President Xi Jinping.
The White House has implemented 10 percent duties on imports from most U.S. trading partners and an additional 145 percent tariff on numerous goods coming from China. In response, Beijing has enforced retaliatory tariffs of 125 percent on certain products.
For now, the likelihood of an agreement between them appears slim, as US Treasury Secretary Scott Bessent told CNBC that although talks are still happening, the next steps lie with China.
"We'll see how things unfold," he stated during the interview broadcast on Monday.
I have consistently maintained that it's China’s responsibility to reduce tensions since they export five times as much to us compared to our exports to them, making these 125 percent tariffs unmanageable.
As uncertainty prevails on trading floors, Asian markets rose on Tuesday, with Hong Kong, Shanghai, Sydney, Seoul, Singapore, Taipei, and Manila all showing gains.
Tokyo was shut down due to a public holiday.
Data this week could give an idea about the impact of Trump's measures on companies, with tech titans Amazon, Apple, Meta and Microsoft all reporting their first-quarter earnings this week,
The schedule also includes crucial economic indicators such as job creation figures and the Federal Reserve’s favored measure of inflation, particularly with concerns that the tariffs might trigger another round of price increases.
"As consumer and business surveys keep declining, the actual data has demonstrated strength, a pattern expected to last another one or two months before the impact of the Liberation tariffs becomes apparent midway through the year," explained Tony Sycamore, an analyst at IG.
Should President Trump’s tariffs be decreased, softer economic indicators may receive more scrutiny, enabling the U.S. economy and financial markets to navigate their way through the remainder of the year.
He also mentioned that should the tariffs remain high, stock markets might continue to decline, increasing the likelihood of a recession.
Key individuals at 0200 GMT
Hong Kong - Hang Seng Index: Up 0.4% at 22,050.01
Shanghai - Aggregate: Increased by 0.1% to reach 3,291.03
Tokyo - Nikkei 225: Remained closed due to a public holiday
Euro/dollar: DECREASED to $1.1392 from $1.1424 on Monday
Pound/dollar: DECREASED to $1.3421 from $1.3441
Dollar/Yen: Increased to 142.41 yen from 142.04 yen.
Euro/pound: DECLINED to 84.89 pence from 84.99 pence
West Texas Intermediate: Down 0.2% at $61.91 per barrel
Brent North Sea Crude: Down 0.2% at $64.66 per barrel
New York - Dow: Increased by 0.3 percent to close at 40,227.59.
London - FTSE 100: UNCHANGED at 8,417.34 (closing level)