Markets Teeter on Tariff Tightrope: Global Shares React to U.S. Trade Moves

European and global markets found themselves in a state of cautious optimism following U.S. President Donald Trump's ambiguous statements regarding his latest tariff deadlines. While Asian shares managed to rally slightly, the uncertainty kept the markets on edge. Trump's decision to extend the July 9 deadline for trade deals to August 1 offers some leeway amid stiff tariffs.

Fifteen countries face the possibility of increased tariffs on their goods, although negotiations remain viable. Notably, 25% duties on products from Japan and South Korea continue to present significant challenges. The European Union, however, may avoid immediate tariff hikes, with ongoing discussions between EU leaders and Trump showing promise.

The economic implications extend beyond tariffs. The U.S. dollar, previously weakened, regained strength, influencing major Asian currencies and share markets. While European equity futures suggest a downward trend, U.S. markets anticipate a flat opening. Meanwhile, Goldman Sachs upgraded its S&P 500 return forecast, driven by anticipated U.S. interest rate cuts and resilient large-cap stocks.

(With inputs from agencies.)