Markets Steady as Trump's Tariff Decision Sparks Euro Rally

Asian stock markets steadied on Monday, and the euro gained ground after President Donald Trump unexpectedly prolonged his tariff threat against EU goods by over a month, extending the deadline to July 9. This move provides a temporary reprieve in his unpredictable trade policy.

Investor sentiment began stabilizing after a previous selloff, as Trump's tariff pause opened pathways for potential trade deals. However, the unpredictability of Trump's policies remains a major concern for investors, prompting a shift of capital from the U.S. to Europe and Asia amid recession worries.

With U.S. and British markets closed for holidays, Monday's trading volumes will likely be thin. Meanwhile, Japanese markets noted gains, driven by President Trump's endorsement of Nippon Steel's bid for U.S. Steel. Investors will turn attention to inflation data and economic indicators in Japan and Germany for further insights.

(With inputs from agencies.)