MARKET WRAPS
European stocks rose on Monday.
U.S. Treasury Secretary Scott Bessent defended the Trump administration 's back-and-forth with declaring new tariffs, then pausing some or carving out exceptions.
"It's called strategic uncertainty," he said.
The European Central Bank's Francois Villeroy de Galhau said that while slower economic growth in the U.S. as a result of higher tariffs would be a blow, it also presented Europe with an opportunity to become an anchor of stability for the global economy.
U.S. Markets
Stock futures fell as investors weighed tariff uncertainty and conerns about upcoming economic data.
This week investors will get to see the the first jobs report covering a period after Trump's Liberation Day tariffs announcement and an early readout on growth in the first three months of the year.
Plus, four of the Magnificent Seven tech stocks- Amazon, Apple, Meta Platforms and Microsoft -are set to post quarterly results.
Stocks to Watch
Tesla Stock Rose offmarket.
Forex:
The euro was likely to trade within a range of $1.13 and $1.14 for the time being, ahead of key economic data and high-profile U.S. earnings, ING said.
The ECB's survey on inflation expectations on Tuesday could show a decline in concerns over price pressures.
However, eurozone April inflation data on Friday could show a pick-up in core inflation, it said.
The dollar edged higher, starting the week with some optimism, Barclays said.
The dollar could also benefit from month-end rebalancing flows, it added.
Demanding a weaker dollar may be a risky approach for the Trump administration, Sony Financial Group said.
"There's a possibility of another sell-off of Treasurys, and there's a high probability that U.S. import prices will rise, accelerating inflation, if the dollar weakens across the board."
Bonds:
Improving risk sentiment could weigh on the recovery in Bunds, Commerzbank said.
The bank remained constructive on Bunds and eurozone government bond duration given likely weak data.
"This week's likely weak GDP and lower inflation data should be supportive."
The data to strengthen the case for the next interest-rate cut by the European Central Bank in June is expected.
Treasury yields edged lower, extending last week's move in early European trade.
"The recent market dynamics are likely to extend at the start of the week with U.S. Treasurys underpinned, Bunds consolidating and spreads tightening, before a high-profile global data cluster provides a reality check on Wednesday," Commerzbank said.
The dollar and Treasurys are more of a concern than the economy or the stock market, Reichmuth & Co's said.
European countries are now questioning the safety of their dollar reserves, it said.
Yields on U.K. government bonds, or gilts, traded flat, slightly outperforming eurozone peers and helped by higher equities.
Investors are cautious, however, ahead of a busy week for U.S. and eurozone economic data and with earnings due from major U.S. tech companies.
Energy:
Oil prices edged higher, but lingering uncertainty over trade talks and the prospect of increased OPEC+ supply continue to cast a shadow on the overall outlook, ANZ said.
"An agreement between the U.S. and China appears someway off."
Gas
Natural-gas prices fell on easing concerns over supplies during the storage injection season, ANZ said.
"Weaker demand in Asia reverberates around the world."
An increasing number of LNG cargoes are being redirected to Europe, it said.
Metals:
Gold prices slid on Friday.
The most interesting point for markets is that buying demand from Asia appears to have dried up, at least for the time being, Pepperstone said.
This could suggest more downside pressure in the near-term.
Given intense market uncertainty and volatility elsewhere, gold still looks like the best safe-haven bet on offer.
EMEA HEADLINES
Moscow, Pyongyang Acknowledge Presence of North Korean Troops in Ukraine Conflict for First Time
SEOUL-North Korea and Russia acknowledged for the first time the deployment of North Korean troops in the Ukraine conflict, a sign of the deepening military alliance and mutual-defense pact between Pyongyang and Moscow.
According to Ukrainian officials, North Korea dispatched around 12,000 soldiers to Russia last fall. Seoul officials reported that Pyongyang sent an additional 3,000 soldiers this year. Ukrainian and South Korean officials have said most of the North Korean troops were deployed in Kursk, the region in southern Russia that was partly occupied by Ukrainian troops last summer.
Deliveroo Shares Hit Three-Year Highs on DoorDash Takeover Proposal
Deliveroo shares hit three-year highs after the London-listed food-delivery company said it received a 2.7 billion pounds ($3.59 billion) takeover approach from DoorDash that it would be prepared to recommend to shareholders if a formal offer were made.
Shares were up 23.40 pence, or 16%, at 170.0 pence in early morning European trading, marking their highest price since January 2022. They are currently up 20% over the year to date.
Airbus Reaches Deal to Buy Spirit AeroSystems Plants
Airbus struck a deal to buy some Spirit AeroSystems assets, taking over factories that make parts for the European plane maker from a supplier that is in the process of being acquired by rival Boeing.
The companies said Monday that they entered into a definitive deal for the acquisition of certain Spirit industrial assets dedicated to Airbus's commercial aircraft programs, following a preliminary agreement in July that was linked to Boeing's $4.7 billion takeover of the Kansas-based jet-parts maker.
GLOBAL NEWS
Trump Upended the Country in His First 100 Days: What's Next?
WASHINGTON-After a 100-day sprint through domestic priorities, President Trump's focus is shifting abroad, driven by a mountain of trade negotiations with other countries, including China, and unfulfilled promises of attaining peace in Ukraine.
By no means is Trump finished at home, where he is consolidating executive power, targeting perceived political enemies, upending the federal bureaucracy, rolling back regulations and imposing strict immigration controls.
Higher Treasury Yields Underscore a Problem for the National Debt
President Donald Trump's tariffs announcement earlier this month led to the biggest bond selloff in decades. The market has since calmed, but that response underscores an ever-looming threat for investors.
Sustained higher Treasury yields will make the already record-high level of interest that the U.S. is paying on its debt even higher and create a feedback loop that further deteriorates the perception of the sustainability of the $36 trillion in national debt.
Bessent Doesn't Know If Trump and Xi Have Talked on Trade
Treasury Secretary Scott Bessent defended President Donald Trump's trade policy on Sunday, but said he didn't know if Trump had spoken directly with Chinese President Xi Jinping.
Bessent told ABC's This Week that he had spoken with his own Chinese counterparts, who were in Washington, D.C., last week for the spring meetings of the International Monetary Fund and World Bank. Their discussions centered on traditional topics such as financial stability and global economic early warnings.
Israel Pressured to Lift Aid Ban as Food, Fuel, Clean Water Dwindle in Gaza
JERUSALEM-Humanitarian supplies are running out in Gaza after almost two months of an Israeli blockade, spurring debate among officials here over how to turn the spigot back on while maintaining pressure on Hamas.
No aid or commercial goods have been allowed to enter the strip since early March, the longest Israel has ever kept the territory under siege since the war began. The blockade followed a two-month cease-fire and surge of goods that allowed many aid groups and households to stock up, but now they are rapidly running out of everything-flour, fuel, protein bars, tents and even containers to hold clean water.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
04-28-25 0537ET
