Beyond equities, broader market indicators are flashing mixed signals. Treasury yields have dropped as traders brace for rate cuts later this year, while the dollar weakens under the weight of declining inflation fears. Commodities also echoed this cooling narrative: oil prices are steadying, and gold suffered a near 4% weekly drop.

On the corporate front, earnings remain uneven. Charter Communications soared nearly 10% after announcing a $34.5 billion merger with Cox, while shares in tech and media stalwarts like Applied Materials and Take-Two Interactive tumbled on weak outlooks. 

Yesterday on Wall Street, major indices added modest gains, continuing their measured ascent. Defensive stocks helped offset weakness in technology bellwethers like Amazon and Meta, which briefly weighed on the Nasdaq 100. The S&P 500 ended up 0.4%, while the tech-heavy Nasdaq gained a scant 0.08%.

European equities, after a sluggish spell, bounced back with a curious mix of gains in defence, utilities, and real estate. It smacks of a defensive pivot - and rightly so. Investors are once again shunning highly cyclical sectors like cars and luxury goods, unsettled by ominous signals about the trajectory of global growth. Even so, the Stoxx Europe 600 rose by 0.6%.

Volatility has receded, taking with it some of the jaggedness in daily trading. The VIX, Wall Street's so-called fear gauge, continues its slow bleed downward, a sign that market anxiety is easing. Wednesday's flurry of economic data from the United States painted a picture of caution. Consumption and output appear to be treading water - a response, perhaps, to the unpredictability of Donald Trump's policies. Meanwhile, the spectres of inflation and rising producer prices remain less menacing than feared.

This has revived bets on two Fed rate cuts before year-end, a shift that brought bond yields down from recently uncomfortable highs. The real estate sector welcomed the news - lower rates translate into cheaper mortgages, and the market responded accordingly.

The prevailing narrative is short-termist, but functional. Equity markets are muddling through a phase of Trumpian tumult and uninspiring economic indicators without tipping into panic. In this climate, weak data is paradoxically welcomed, as it strengthens the case for looser monetary policy - the ultimate elixir for markets. In a speech yesterday, Jerome Powell, the Fed's chairman, tiptoed around immediate policy questions but hinted at a broader rethink of the Fed's decision-making framework, particularly how it balances its dual mandate of full employment and price stability. Markets interpreted his remarks as a departure from orthodoxy - and therefore as good news.

Economic headlines remain thick on the ground. In Japan, GDP contracted slightly in the first quarter, underperforming expectations - and that was before the impact of American trade tariffs. Mr Trump, meanwhile, was busy drumming up business in the Gulf. Lavish investment pledges and contracts were signed, but efforts to foster regional leadership in artificial intelligence are stirring unease among Republican hawks, who see echoes of past missteps with China.

On the geopolitical front, high hopes for peace talks between Russia and Ukraine in Turkey are dissipating. Mr Trump, having initially encouraged bilateral dialogue, has reverted to his trademark brinkmanship, declaring that no resolution is possible without his personal involvement and a tête-à-tête with Vladimir Putin. It is yet another veiled slight toward Ukraine's president, Volodymyr Zelensky, whom the White House seems reluctant to treat as an equal.

In Asia-Pacific, markets closed the week with little fanfare, mostly flat. Australia, Taiwan, and South Korea eked out modest gains. Japan, India, and China are in the red. Futures are in the green this morning, and so are European indices.

Today's economic highlights:

On today's agenda: industrial production in Japan; trade balance in the eurozone; in the United States, building permits, housing starts, and the University of Michigan sentiment. See the full calendar here.

  • Dollar index: 100,798
  • Gold: $3,159
  • Crude Oil (BRENT): $64.5 (WTI) 61.22
  • United States 10 years: 4.42%
  • BITCOIN: $103,688

In corporate news:

  • Trump attacks Apple over its plan to ship US iPhones from India.
  • Third Point reveals stakes in United States Steel and Kenvue in its quarterly filing.
  • Berkshire doubles its stake in Constellation Brands and sells Citigroup and other financial stocks.
  • Starboard Value reduces its stake in Pfizer and News Corp and increases its stake in Autodesk.
  • Elliott dissolves its stake in Nvidia, reduces its stake in Southwest Airlines and increases its stake in Phillips 66.
  • Thoma Bravo to sell its remaining stake in Nasdaq for $3.4 billion.
  • Regeneron wins $406.8 million antitrust verdict against Amgen.
  • Coinbase warns of a loss of up to $400 million following a cyberattack.
  • Rite Aid sells 1,000 pharmacies to CVS, Walgreens and other companies.
  • Birkenstock is raising the price of its sandals to offset tariffs.
  • Dailymotion acquired the video creation app Mojo to enhance content offerings.
  • Meta Platforms requested a judge to dismiss the FTC's monopoly case and delayed its AI model rollout.
  • Walmart issued warnings about rising prices due to tariffs, impacting US retail sales.
  • Nvidia plans to establish an R&D center in Shanghai amidst international business developments.
  • Microsoft denies involvement in the Gaza conflict and faces a stake dissolution by Soros Fund Management.
  • Coinbase faces a potential $400 million loss from a cyber attack and SEC investigation.
  • Barings Corporate Investors announced a dividend of USD 0.4 for Q1.

Analyst Recommendations:

  • Carnival Corporation: HSBC upgrades to hold from reduce with a price target raised from USD 14 to USD 24.
  • Globant S.a.: Piper Sandler & Co downgrades to neutral from overweight with a price target reduced from USD 154 to USD 116.
  • Seagate Technology Holdings Plc: BNP Paribas Exane upgrades to neutral from underperform with a price target raised from USD 60 to USD 100.
  • Boeing: Baird maintains its outperform recommendation and raises the target price from USD 200 to USD 250.
  • Bunge Global Sa: Heather Jones Research maintains its not rated recommendation and raises the target price from USD 74 to USD 100.
  • Carnival Corporation: HSBC upgrades to hold from reduce with a price target raised from USD 14 to USD 24.
  • Dell Technologies Inc.: Citigroup maintains its buy recommendation with a price target raised from USD 105 to USD 128.
  • Doximity, Inc.: Canaccord Genuity maintains its hold recommendation with a price target reduced from USD 71 to USD 50.
  • Everus Construction Group, Inc.: Stifel maintains its buy recommendation and raises the target price from USD 55 to USD 71.
  • Johnson Controls International Plc: JP Morgan maintains its overweight recommendation and raises the target price from 81 to USD 98.
  • Lennox International Inc.: JP Morgan maintains its underweight recommendation and raises the target price from 455 to USD 549.
  • Meta Platforms, Inc.: Loop Capital Markets maintains its buy recommendation and raises the target price from USD 695 to USD 888.
  • Rubrik, Inc.: KeyBanc Capital Markets maintains its overweight recommendation and raises the target price from USD 76 to USD 98.
  • Snap Inc.: Loop Capital Markets maintains its buy recommendation and reduces the target price from 16 to USD 12.
  • Unitedhealth Group Inc.: Mizuho Securities maintains its outperform rating and reduces the target price from USD 515 to USD 350.
  • Vertiv Holdings Co: JP Morgan maintains its overweight recommendation and raises the target price from 100 to USD 127.
  • Western Digital Corporation: BNP Paribas Exane maintains its outperform recommendation and raises the target price from USD 38 to USD 62.
  • Zscaler, Inc.: Loop Capital Markets maintains its hold recommendation with a price target raised from 195 to USD 250.