Markets Open with Caution Amid Trade Talks and Economic Uncertainty
Global financial markets opened the week cautiously on Monday, following a volatile U.S. trading session on Friday, marked by reports of anticipated trade talks between Washington and Beijing.
Major indices posted their first weekly losses in three weeks, as investor focus now shifts to upcoming negotiations and key economic data. Markets continue to react to the ongoing impact of tariffs, monetary policy changes, and fluctuations in global currencies and commodities.
U.S. stocks ended Friday’s session mostly unchanged after two consecutive days of gains. Investors remained on edge, awaiting updates on tariff developments.
All eyes are now on upcoming weekend trade talks between U.S. and Chinese officials in Switzerland, which former President Trump described as potentially “very substantial.” He also hinted at the possibility of reducing current tariffs in China—currently at 145%—if discussions proceed positively.
Monday’s global markets are showing mixed performance as investors await developments in U.S.-China trade negotiations and key economic indicators, such as eurozone inflation data.
In the U.S., stock indices continue to face downward pressure after last week’s decline, amid ongoing concerns about protectionist policies and their impact on growth. Investors are also closely watching comments from Federal Reserve officials regarding interest rate policies.
The U.S. dollar saw a slight decline today, while gold and oil prices may continue to edge higher, reflecting a risk-averse market environment with a search for safe-haven assets amid economic uncertainty.
In Asia, markets were buoyed by government stimulus, driving indices like the Nikkei and Shanghai to post solid gains late last week. Meanwhile, European markets are awaiting the release of economic data to gauge the future path of interest rates.
The Japanese yen fell on Monday in Asian trading against a basket of major and minor currencies, resuming its recent losses. It hit a five-week low as risk appetite improved following positive U.S.-China trade negotiations in Switzerland.
A rise in U.S. 10-year Treasury yields also added pressure on the yen ahead of key U.S. inflation data, which is ex