The tariff policies implemented by U.S. President Donald Trump continue to capture market attention, especially after the White House announced exemptions for certain technology products. In a new move, smartphones, computers, and some electronics were exempted from tariffs, leading to a rise in shares of Chinese tech companies and Apple, which heavily relies on the Chinese market.
Regarding European stock markets, they had a positive start this week, with major indices like DAX, CAC 40, and FTSE 100 rising after the announcement of the exemption for electronics. This decision helped boost investor optimism, with hopes that other tariffs could be eased in the future, leading to significant gains in European markets. However, despite the rise, there remains some uncertainty about what will happen going forward, as Trump indicated that these exemptions would be temporary and announced plans to impose additional tariffs on electronics next week, which brings renewed tension to the trade war between the U.S. and China.
As for quarterly earnings, markets are awaiting reports from major companies like Goldman Sachs, which is expected to report revenues of $14.76 billion. Some executives have warned about the impact of tariffs on profits and economic activity. Additionally, markets are looking ahead to remarks from Federal Reserve Chairman Jerome Powell on Wednesday, where investors will seek reassurance on how the central bank plans to respond if economic pressures from tariffs escalate.
Regarding the Chinese economy, data showed that the trade surplus in March exceeded expectations, reflecting a rise in exports that was boosted ahead of the U.S. tariffs. Investors are looking for more Chinese economic data, such as GDP and production indicators, which may reveal the impact of trade tensions on the Chinese economy.
