European Markets Brace for Uncertainty Amid Tariff Talks and Tech Earnings
European shares were subdued as investors awaited developments in trade talks and a key European Central Bank meeting. Concurrently, U.S. futures rose slightly ahead of major tech earnings. Despite trade uncertainty, markets remained hopeful for a deal and anticipated solid quarterly earnings from big tech companies.
European shares remained subdued on Monday as the market braced for significant trade talk developments and a pivotal European Central Bank meeting later in the week. Meanwhile, U.S. futures showed a positive trend, buoyed by anticipation of substantial earnings reports from tech giants, including Alphabet, Tesla, and IBM.
The European Union is preparing potential countermeasures against the U.S. as the likelihood of a favorable trade agreement dwindles. Investors looked forward to progress before President Trump's August 1 tariff deadline, although U.S. Secretary of Commerce Howard Lutnick remained optimistic about reaching an agreement with the EU.
As the yen strengthened following Japan's upper house elections, other market indicators, like euro zone government bond yields and U.S. Treasury yields, showed mixed reactions. All eyes are now on the upcoming ECB meeting and the BOJ's rate considerations amid political uncertainty in Japan.
(With inputs from agencies.)
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