Stocks and dollar rise as auto tariff relief eases tensions
Press Hub UCapital
Share:
Global markets opened on a cautiously positive note Tuesday after the Trump administration announced measures to soften the impact of US auto tariffs. While the move offered partial relief to automakers, broader concerns over China trade tensions and the durability of global supply chains continued to cap gains across risk assets.
S&P 500 futures and European benchmarks each rose by 0.1%, reflecting modest optimism following Washington’s decision to reduce the cumulative tariff burden on foreign car parts used in US-manufactured vehicles. However, without significant concessions on broader China tariffs, market moves remained restrained. A public holiday in Japan further muted trading volumes in the Asian currency markets, though the US dollar managed to stabilize, ticking higher against the Canadian dollar after Mark Carney’s Liberals retained power in Canada’s election, albeit without a parliamentary majority.
Despite the S&P 500 recovering much of its early April losses on softer tariff rhetoric, the dollar’s rebound has been limited. The euro, trading at $1.1376, has posted a 5% gain against the greenback in April, marking its largest monthly rise in nearly three years. Meanwhile, the dollar’s 6.7% decline against the Swiss franc represents its steepest drop in a decade, underscoring persistent safe-haven demand.
Market sentiment was jolted overnight after Treasury Secretary Scott Bessent warned that de-escalation of tariffs was contingent on China’s actions. Analysts from J.P. Morgan cautioned that front-loaded purchasing ahead of new tariff measures may temporarily bolster US GDP and jobs data due this week, but noted that the 42% plunge in Chinese shipments to the US over the past 10 days could soon trigger deeper supply chain disruptions.
Equities in Asia traded mixed: Hong Kong’s Hang Seng Index rose 0.3%, while China’s CSI 300 fell 0.2%. In commodities, the stronger dollar pressured gold, with the yellow metal retreating 1% to $3,305 per ounce. Brent crude also weakened by 1%, trading at $65.21 per barrel, reflecting broader concerns over global growth.
Looking ahead, focus will remain on key economic releases including first-quarter US GDP and April nonfarm payrolls, as well as European inflation figures from Spain and Belgium. Corporate earnings will also dominate headlines, with BP, Adidas, Coca-Cola, General Motors, and Visa set to report today, followed by tech heavyweights Apple, Microsoft, Amazon, and Meta Platforms later in the week.
With benchmark US 10-year Treasury yields steady at 4.206% and futures broadly unchanged, markets appear to be in a holding pattern, awaiting clearer signals on trade negotiations and macroeconomic momentum.
S&P 500 futures and European benchmarks each rose by 0.1%, reflecting modest optimism following Washington’s decision to reduce the cumulative tariff burden on foreign car parts used in US-manufactured vehicles. However, without significant concessions on broader China tariffs, market moves remained restrained. A public holiday in Japan further muted trading volumes in the Asian currency markets, though the US dollar managed to stabilize, ticking higher against the Canadian dollar after Mark Carney’s Liberals retained power in Canada’s election, albeit without a parliamentary majority.
Despite the S&P 500 recovering much of its early April losses on softer tariff rhetoric, the dollar’s rebound has been limited. The euro, trading at $1.1376, has posted a 5% gain against the greenback in April, marking its largest monthly rise in nearly three years. Meanwhile, the dollar’s 6.7% decline against the Swiss franc represents its steepest drop in a decade, underscoring persistent safe-haven demand.
Market sentiment was jolted overnight after Treasury Secretary Scott Bessent warned that de-escalation of tariffs was contingent on China’s actions. Analysts from J.P. Morgan cautioned that front-loaded purchasing ahead of new tariff measures may temporarily bolster US GDP and jobs data due this week, but noted that the 42% plunge in Chinese shipments to the US over the past 10 days could soon trigger deeper supply chain disruptions.
Equities in Asia traded mixed: Hong Kong’s Hang Seng Index rose 0.3%, while China’s CSI 300 fell 0.2%. In commodities, the stronger dollar pressured gold, with the yellow metal retreating 1% to $3,305 per ounce. Brent crude also weakened by 1%, trading at $65.21 per barrel, reflecting broader concerns over global growth.
Looking ahead, focus will remain on key economic releases including first-quarter US GDP and April nonfarm payrolls, as well as European inflation figures from Spain and Belgium. Corporate earnings will also dominate headlines, with BP, Adidas, Coca-Cola, General Motors, and Visa set to report today, followed by tech heavyweights Apple, Microsoft, Amazon, and Meta Platforms later in the week.
With benchmark US 10-year Treasury yields steady at 4.206% and futures broadly unchanged, markets appear to be in a holding pattern, awaiting clearer signals on trade negotiations and macroeconomic momentum.