Trump's Trade Twist: Global Markets React

Global markets experienced a mix of movements on Tuesday following President Donald Trump's decision to postpone new tariffs on EU imports, offering a reprieve to investors. Despite thin U.S. trading due to a holiday, Nasdaq and S&P 500 futures climbed alongside a modest rise in FTSE futures. The anticipated rebalancing flows at month-end and an awaited earnings report from Nvidia added optimism among risk assets.

In contrast, Asian shares presented a somber picture, marked by declines in the MSCI's Asia-Pacific index, Japan's Nikkei, and China's blue-chip index. Market attention is also drawn to the upcoming speeches from various Federal Reserve policymakers and a major U.S. core PCE price index release, which could provide fresh insights into future U.S. interest rate directions.

The currency landscape remained volatile, with the dollar facing its fifth consecutive monthly loss, while oil prices lightly decreased amid speculation over OPEC+'s future production decisions. Analysts, like David Meier of Julius Baer, have highlighted concerns over U.S. trade policies, suggesting potential long-term shifts in the dollar's strength.

(With inputs from agencies.)