Dollar’s Decline on Headlines Indicates Tariff Dependency – Europe Market Wrap

The Dollar fell by the most in three months after the Washington Post reported that Trump’s aides are considering universal tariff ideas that would only cover key imports. If adopted, such a scheme is likely to have a reduced impact on global trade and lessen the inflationary impact of import tariffs.

Technology companies led equities gains on Monday, pushing stocks out of a year-end slump on renewed confidence in the continued demand for AI infrastructure.

Nasdaq 100 futures rose 1%, with semiconductor giants Nvidia and Advanced Micro Devices surging more than 2% in premarket trade. In Europe, the Stoxx 600 increased, aided by ASML’s largest daily gain since October. S&P 500 contracts were up 0.7%.

Following the Washington Post report, US Treasuries erased their losses for the session. The 30-year rate rose as much as four basis points to 4.85% earlier today, the most since November 2023, ahead of a $58 billion issuance of three-year notes on Monday.

Gold fell as Goldman Sachs said it no longer expects the commodity to hit $3,000 per ounce by the end of the year, shifting the projection to mid-2026 on expectations that the Fed will lower rates less frequently.

[06:02 ET] Trump aides explore tariff plans for every country – WAPO. [Dollar Weakened]

[04:13 ET] Traders pare ECB rate-cut bets, seeing fewer than 100bps this year

[03:55 ET] German Services PMI Final Actual 51.2 (Forecast 51, Previous 51.0) [Euro Strengthened]