Global equity markets have regained much of the losses from the past six weeks since U.S. President Donald Trump imposed tariffs, leaving investors anxiously awaiting further trade deals. U.S. stock markets have turned positive for the year, while European shares are slightly higher compared to when Trump introduced tariffs on both allies and adversaries on April 2. Technology stocks have been in the spotlight recently, particularly after U.S. chipmakers Nvidia and Advanced Micro Devices (AMD) announced significant artificial intelligence deals in the Middle East. This coincided with Trump’s visit to Saudi Arabia, which helped boost Nvidia’s stock, raising the chipmaker’s valuation to $3 trillion and CEO Jensen Huang’s net worth to $120 billion. The success of Nvidia’s performance is expected to lift Europe’s tech sector, with the European tech stock index set for a boost, especially firms like Dutch chipmaker ASML. However, equity futures indicate a lower opening for European markets, while U.S. markets are expected to have a flat day.
In an interview on Tuesday, Trump expressed his willingness to engage directly with Chinese President Xi Jinping on trade pact details, signaling a potential breakthrough. Meanwhile, talks with India, Japan, and South Korea on trade agreements are still pending. The U.S. dollar, which has been battered due to uncertainty surrounding the U.S. trade policy, remains weak in Asian markets. According to a recent Bank of America survey, global asset managers held their largest underweight position in the U.S. dollar in 19 years as of May.
Looking ahead, the next key economic indicator from the U.S. will be the retail sales data for April, scheduled for release on Thursday. That same day, talks between Ukraine and Russia in Istanbul will take place, with hopes for a ceasefire after nearly three years of conflict in Europe. Other notable events include the release of final consumer price index (CPI) figures for Germany and Spain, earnings reports from Burberry Group and ABN Amro Bank, as well as remarks from Bank of England Governor Andrew Bailey in Amsterdam. Additionally, the Federal Reserve Bank of New York will publish its Q1 report on household debt and credit, while Fed Vice Chair Philip Jefferson is scheduled to speak about the economic outlook.
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