Stocks Rise as Japan Sets the Stage for Trade Agreements – Europe Market Wrap

Global equities recovered, and some early indications of calm returned to Wall Street after the largest three-day drop since 2020, with investors focussing on the possibility of US trade talks.

US equities futures advanced by more than 1%, with Nvidia leading the Magnificent Seven tech mega-caps higher in premarket trade. Apple gained around 1% after the iPhone maker’s shares fell 19% in the previous three trading days, its worst three-day drop since July 2001. Treasuries and the Dollar remained stable.

Trump made a series of comments Monday about his anticipated duties, but he provided little clarification about what he wants in exchange for lower taxes – or whether he is willing to grant relief at all. He rejected a proposal from the EU to eliminate tariffs on all bilateral trade in industrial goods with the US and threatened China with an additional 50% import tax.

Treasuries recovered from yesterday’s severe losses, with longer-dated rates rising to their highest level since March 2020. Investors will watch bond offerings on Tuesday to see if there is a crack in demand, with the US expected to issue three- and 10-year notes, as well as 30-year bonds. Oil prices remained stable after a three-day drop. Gold climbed higher.