Stocks Drop as Confidence Is Depleted by a Rise in Trade Risk – Europe Market Wrap

Global markets began the new month under pressure, with an increase in global trade tensions and geopolitical concerns undermining investor confidence.

S&P 500 futures fell 0.5%, as did European and Asian shares. The Dollar fell 0.4%, continuing a record of five straight monthly losses. Treasury rates increased throughout the curve, with the 10-year rate rising 4 bps to 4.44%.

The recent twists in Trump’s tariff agenda have increased market volatility, following mutual claims of breaching a trade agreement by the US and China, as well as Trump’s promise to quadruple taxes on all steel and aluminium imports.

The tensions have slowed a recovery in US stocks, as traders fear that the uncertainty will endure in the absence of long-term deals. Meanwhile, Ukraine launched a series of strikes deep within Russia ahead of the peace talks slated on Monday in Istanbul.

Brent crude oil rose towards $65 per barrel as OPEC+ increased production less than expected and global tensions intensified. Demand for haven assets is driving gold to its largest gain in more than a week.