A shortened trading week has kicked off with stock markets around the world rallying in hope that the tariff war may ease. Over the weekend, the White House announced that it is removing technology (smartphones, computers, semiconductors, memory devices and more) from the reciprocal tariff program, as it prepares a separate technology tariff program to be announced in a month or two.
Building on Friday’s gains, US index futures are up 0.90% to 1.70%, while in Europe, the Dax is up 2.3% and the FTSE is up 1.7%. Commodities are also climbing with Crude Oil up 1.4% and Copper up 1.6%. Bitcoin is up 1.2%, while Gold is down 0.1%. The US 10-year treasury note yield is steady near 4.45%. In currency action, the Loonie, Yen, and Euro are steady this morning, consolidating last week’s rallies.
Apparently undaunted by tariff threats or perhaps trying to get in front of what was coming, China reported a much larger than expected trade surplus ($102B vs street $77B) driven by a surge in exports (12.4% vs street 4.4%). China GDP and retail sales are due on Wednesday.
The Bank of Canada is widely expected to hold its overnight rate steady when it meets on Wednesday. Canada consumer prices are due tomorrow. Wednesday also brings US retail sales, a speech from Fed Chair Powell and the start of US housing data which continues Thursday.
Boosted by increased trading revenues from high market volatility, Goldman Sachs reported stronger than expected Q1 results this morning ($14.12 vs street $12.33). Headliners this week include Citigroup, Bank of America and Johnson & Johnson on Tuesday, Travelers on Wednesday, and finally, Netflix, UnitedHealth and American Express on Thursday.