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Axel Rudolph, senior technical analyst at online trading platform IG:

Bank of America (BAC) and Citigroup (C) reported first-quarter increases in profits and revenue driven by robust trading results, becoming the latest big banks to benefit from the market volatility triggered by the start of President Trump’s tariff rollout in February and March.

Bank of America CEO Brian Moynihan acknowledged in a statement Tuesday that "we potentially face a changing economy in the future" — a nod to the uncertainties ahead as some of Trump's more aggressive tariffs are still in question — but he also told analysts the bank's research team doesn't see a recession happening in 2025.

US consumers, according to the bank's data, keep "pushing money into the economy" and the lender's business clients "remain profitable, liquid and have strong results."

"We continue to watch for signs the environment [is] actually changing," Moynihan added.

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Oil prices dipped on Tuesday, lingering at their lowest point since 2021, amid concerns that tariffs will slow down economic growth and demand for fuel.

Brent crude futures fell 0.2% to $64.74 a barrel, while US West Texas Intermediate (WTI) crude was little changed, trading at $61.48 a barrel.

US energy secretary Chris Wright warned that average oil prices are set to be lower under the current administration than the previous one, according to a Bloomberg report on Sunday.

"Under President Trump’s leadership in the next four years we’ll almost certainly see lower average energy prices than we saw in the last four years of the previous administration,” Wright reportedly said at a briefing in Riyadh.

Hargreaves Lansdown's Clayton said: "Crude oil has taken a bashing of late and today looks to be holding steady at around $65.2 for Brent crude futures. Oil faces something of a perfect storm currently, with trade wars raising the spectre of reduced demand for oil, just as production restraint within OPEC seems to be breaking down, pushing more oil onto the markets."

Markets are pricing in a May Bank of England interest rate cut, but tomorrow's inflation data could throw a spanner in the works. Here are some views from the market:

Harry Goodliffe, director at HTG Mortgages, said:

Tony Redondo, founder at Cosmos Currency Exchange, said:

Vicky McKeever writes:

The pound continued to strengthen against the dollar on Tuesday morning, up 0.4% to $1.3212 at the time of writing, amid hopes of a UK-US trade deal.

President Trump's number two, JD Vance, said there was a "good chance" of reaching a trade deal with the UK.

"We're certainly working very hard with Keir Starmer's government," Vance said in an interview on Monday with online publication UnHerd.

The US dollar index (DX-Y.NYB), which measures the greenback against a basket of six currencies, was trading flat on Tuesday morning at 99.70, hovering around its lowest point in three years.

British business confidence slumped over the first three months of the year, as bosses entered “a state of despondency” over rising taxes combined with the threat of US trade tariffs.

A poll by the Institute of Chartered Accountants in England and Wales (ICAEW) indicated that confidence is at its lowest point since late 2022, when inflation was surging amid the energy crisis and Liz Truss’s mini-Budget.

More than half of companies polled in the ICAEW’s most recent survey, 56% of respondents, said taxes were a mounting challenge, an all-time high figure.

Alan Vallance, the Institute’s chief executive, said: “These findings reveal a state of despondency among businesses as they stave off a blizzard of extra outlays, including the rise in national insurance.

“Meanwhile, the US tariff announcements have loaded on exceptional uncertainty and the very real prospect of higher costs and global economic woes.

“Tax worries have never been so prominent, causing record levels of distress for our members for the second quarter running.”

The ICAEW’s business confidence monitor, which produces a so-called index score from its quarterly surveys, came in at minus 3, the weakest reading since the fourth quarter of 2022 and down from 0.2 in the previous poll.

PA reports

Shares in Netflix rose in pre-market trading after company executives outlined ambitious long-term goals, including a market valuation of $1trn by the end of the decade.

The streaming giant, which is due to report first-quarter earnings on Thursday, has forecast an 11% increase in revenue for the opening quarter of 2025. On a foreign-exchange neutral basis, that equates to 14% growth — slightly below full-year guidance due to the timing of recent price increases and seasonal trends in its advertising business.

Netflix expects total revenues for the quarter to reach $10.416bn, representing a year-on-year increase of 11.2%. Analysts, however, are projecting slightly higher revenues of $10.54bn, reflecting anticipated growth of 12.5%.

According to The Wall Street Journal, Netflix executives shared their long-term strategic goals in a recent internal meeting, including plans to double annual revenue and triple operating income by 2030. Citing individuals familiar with the meeting, the report said Netflix aims to grow revenues from $39bn last year to nearly $80bn by the end of the decade.

The company also has aggressive targets for its advertising business, forecasting global ad revenues to reach $9bn, up sharply from the $2.15bn generated in the US alone.

Asian markets rallied, with Japan leading the surge, after President Donald Trump signalled a possible halt to planned auto tariffs—easing investor nerves already soothed by the decision to delay duties on certain consumer tech products.

Paige Tao, economist at PwC UK, said:

US stock futures fell as President Trump's rapid trade policy shifts kept investors on edge ahead of the next batch of corporate earnings.

Futures attached to the Dow Jones Industrial Average (YM=F) and the benchmark S&P 500 (ES=F) slumped 0.1%. Futures attached to the tech-heavy Nasdaq Composite (NQ=F) fell 0.2%.

On Monday, US stocks rose on the heels of a remarkably volatile week for markets following news the Trump administration would treat tariffs on key electronics separately from duties on specific countries and would impose them at a later date. The president also floated possible tariff exemptions for car companies, sending auto stocks soaring.

But any clarity emerging on Trump's trade continued to remain elusive as the president simultaneously pushed forward with plans to place tariffs on pharmaceutical and semiconductor imports.

Auto stocks jumped on Monday afternoon after US president Donald Trump hinted tariff relief might be coming.

“I’m looking at something to help some of the car companies, where they’re switching to parts that were made in Canada, Mexico, and other places, and they need a little bit of time because they’re going to make them here,” Trump said, adding that “they need a little bit of time, so I’m talking about things like that.”

Trump didn’t say whether relief was coming for the 25% tariffs already in place for foreign auto imports or the 25% auto parts tariffs that will be finalized by May 3.

Even auto imports covered by the USMCA between the US, Mexico, and Canada are subject to tariffs, but parts originating from the US can be backed out of the tariff calculation.

Shares of Big Three automakers General Motors (GM), Stellantis (STLA), and Ford (F) all popped over 3% Monday.

Recently, automakers have been scrambling to respond to the daily drip of tariff escalations that began once Trump started his tariff war in earnest following his 2 April "Liberation Day" event.

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Yahoo Finance UK's Vicky McKeever writes:

UK pay continued to grow much faster than inflation in the three months to February, though the jobs market showed signs of slowing down.

The average regular earnings excluding bonuses rose 5.9% in the period on an annual basis, according to data from the Office for National Statistics (ONS), easily outstripping inflation, which came in at 2.8% in February.

Annual growth in real terms — adjusted for inflation — was down slightly, at 2.1%, from the previous year, compared with 2.2% for the 12 months to January.

There were 781,000 job vacancies between January and March, according to estimates from the ONS, which was down 26,000 on the previous three months. It was the first time since the period between March and May of 2021 that there have been less openings than there were before the pandemic.

Early estimates showed that the number of payrolled employees fell by 78,000 in March, following a fall of 8,000 in February.

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Hello from London. Lucy Harley-McKeown here, with the latest news about markets and the economy.

This morning we've already had all-important UK jobs and wage data. Later we'll be looking to Germany's ZEW economic survey and earnings from Johnson & Johnson (JNJ), Bank of America (BAC), Citigroup and United Airlines (UAL).

Let's get to it.