Global Markets on Edge Amid Tariff Threats and Earnings Season Uncertainty

Global equity markets experienced fluctuations on Monday due to escalating U.S. tariff threats, pushing investors to the sidelines as they await inflation data and the commencement of the earnings season. The euro slipped to a near three-week low against a stable dollar, following the threat of a 30% tariff on imports from the European Union and Mexico, announced by U.S. President Donald Trump.

Amid these trade tensions, the European Union issued a warning regarding potential retaliatory measures unless a trade agreement with the U.S. is reached. As the U.S. earnings season begins, analysts predict a 5.8% year-over-year increase in S&P 500 profits, although this outlook has dimmed since the early forecast of 10.2% growth. Wall Street indices showed mixed results, with moderate gains recorded across major indexes.

In other developments, U.S. Treasury yields rose, reflecting geopolitical uncertainty, while currency markets showed resilience. Oil prices faced downward pressure as trade policy disputes loom large. Concurrently, gold retreated after peaking recently, as traders remain anxious awaiting forthcoming economic data.

(With inputs from agencies.)