Futures Climb as Investors Expect Selective US Tariffs, Bloomberg
Stock futures in the US and Europe climbed on hopes that the next wave of tariffs from President Donald Trump’s administration may be more selective than initially feared. Investors welcomed signs of a more measured approach, though uncertainties around trade policies continue to unsettle global markets.
Optimism Lifts Markets but Caution Remains
Futures for the S&P 500 and Euro Stoxx 50 rose alongside gains in Chinese stocks. However, a broader index tracking Asian shares dipped slightly. Meanwhile, the 10-year US Treasury yield edged up, while the dollar remained steady and the yen weakened.
Market sentiment improved after reports suggested that the upcoming US tariffs, set to take effect on April 2, will be more narrowly focused rather than a sweeping global measure. Despite this, concerns linger, with officials in China and Australia warning that US trade policies could cause widespread economic disruptions.
Khoon Goh, head of Asia research at ANZ Group Holdings Ltd., noted that while the more targeted tariffs provided some relief in Asian trading, uncertainty remains. "The actual announcement next week could still bring surprises, and President Trump’s statements in the coming days could shift expectations," he said.
Trump’s Trade Approach and Global Impact
Trump is expected to impose broad tariffs on certain countries but may grant exemptions to some. Unlike previous suggestions, the administration reportedly does not plan to introduce industry-specific tariffs at the same time.
Australia’s Treasurer Jim Chalmers warned that these US policies could have a major impact on the global economy, while Chinese Premier Li Qiang stated that China is prepared for "greater-than-expected shocks."
China’s Tech Stocks on the Rise
Despite trade concerns, China’s stock market saw gains, particularly in the tech sector. Ant Group, backed by Jack Ma, announced the use of Chinese-made semiconductors for AI model training, reducing costs by 20%. This news fueled optimism in Hong Kong’s tech stocks, which have surged 26% this year.
Investor enthusiasm has been further fueled by DeepSeek’s introduction of a cost-efficient large language model, igniting fresh confidence in China’s AI sector. Janet Perumal, head of Asia Pacific investments at Wellington Management, sees room for further stock valuation growth in China.
Global Economic and Political Developments
Indonesia’s stock market continued its slump as its economic outlook darkened. In Canada, the dollar saw slight gains following Prime Minister Mark Carney’s snap election call for April 28. Carney also unveiled economic relief measures to offset the impact of US tariffs.
In Turkey, market volatility is expected to rise after a key opposition politician’s arrest. The Turkish central bank held emergency meetings with lenders, while regulators imposed a short-selling ban on stocks.
Commodities and Inflation in Focus
Oil prices remained stable as investors assessed the potential impact of new US tariffs alongside an expected increase in OPEC+ supply. Gold hovered around $3,022 an ounce, close to its recent record high.
Looking ahead, traders will closely monitor economic data from Europe, the UK, and the US to gauge the impact of trade tensions. Inflation reports from Australia and the US, particularly the Personal Consumption Expenditure index, will be key indicators of market direction.
