A look at the day ahead in European and global markets |
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By Stella Qiu, Markets Correspondent |
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Donald Trump did it again. Out of the blue, the U.S. President declared that he was raising tariffs on South Korea to 25%, from 15%, for not enacting the trade deal agreed last July. That affects autos, lumber and pharma, yet stocks there jumped 2% to record highs anyway.
Initially, South Korea's KOSPI (.KS11), opens new tab did fall over 1%, but that just lured buyers looking for exposure to Asia's best-performing market of 2025. With its Industry Minister heading to the U.S. soon, there is every chance of de-escalation, and traders were again betting on TACO - Trump always chickens out.
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Shipping containers are seen at Pyeongtaek port in Pyeongtaek, South Korea, April 15, 2025. REUTERS/Kim Hong-Ji |
Of course there is little surprise Seoul isn't rushing to invest hundreds of billions in the U.S., when the threat of random tariffs is a permanent feature of the Trump administration.
The tariff uncertainty did add to the appeal of precious metals, with gold and silver charging back towards their record highs. Gold climbed 1% to $5,063 an ounce, while silver vaulted 5% to $109 an ounce.
Stocks in Asia were generally upbeat amid hopes that blockbuster earnings from the so-called U.S. Magnificent Seven, starting with Meta (META.O), opens new tab, Microsoft (MSFT.O), opens new tab and Tesla (TSLA.O), opens new tab on Wednesday, will help extend the bull market into 2026.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab rallied 1% to a new record high. Even Japan's Nikkei (.N225), opens new tab gained 0.7% despite the yen holding near the strongest level in over two months, which would normally be considered a negative for its exporters.
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European bourses are headed for a stronger open, with EURO STOXX 50 futures up 0.3%. Nasdaq futures gained almost 0.6%, while S&P 500 futures edged up 0.3%. Next up, it is looking light on the global economic calendar until the Federal Reserve policy decision on Wednesday where no move in interest rates is expected.
However, the meeting will be overshadowed by a DOJ investigation into Chair Jerome Powell, which should make for an interesting press conference afterwards. If Powell floats the idea of not stepping down as a governor in May, as he is entitled to do under Fed rules, how Trump reacts is anybody's guess. |
Graphics are produced by Reuters. |
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Key developments that could influence markets on Tuesday: |
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Earnings from LVMH Moet Hennessy Louis Vuitton and Christian Dior
- U.S. ADP Weekly Employment Change, Conference Board January Consumer Confidence
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Graphics are produced by Reuters. |
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Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
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