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Global stocks clung to three-week highs Monday as investors weighed hopes for easing tariff tensions against persistent confusion over United States trade policy.
European markets opened firmer, while U.S. futures were mixed and Asian shares posted modest gains. The week ahead is heavy with earnings reports, including results from Apple (AAPL, Financials), Microsoft (MSFT, Financials), Amazon (AMZN, Financials), and Meta Platforms (META, Financials), which together make up over 40% of the S&P 500's market value.
Uncertainty around U.S.-China trade talks continued. While President Donald Trump pointed to progress, Treasury Secretary Scott Bessent offered little confirmation. Analysts said the lingering tensions are dampening business investment and consumer confidence worldwide.
MSCI's world stock index hovered near its highest level since early April, after markets reeled from Trump's announcement of new reciprocal tariffs. Japan's Nikkei rose 0.4%, Chinese blue chips were steady, and European shares made modest gains. S&P 500 futures dipped 0.25%, while Nasdaq futures fell 0.3%.
On the earnings front, about 64% of companies have beaten estimates so far this season, a drop from 71% in the prior quarter, according to Bank of America.
Currency markets remained cautious. The U.S. dollar traded at 143.81 yen and $1.1345 against the euro, down more than 4% against both in April the steepest monthly drop in over two years. Markets are now pricing in a roughly 65% chance of a Federal Reserve interest rate cut in June, with 85 basis points of easing expected by year-end.
Germany and eurozone inflation readings due this week could strengthen the case for a European Central Bank rate cut. The Bank of Japan, facing similar global uncertainty, is expected to leave its policy rate unchanged at 0.5%.
U.S. 10-year Treasury yields steadied around 4.25%, easing from an April high of 4.592% after Trump signaled no immediate plans to replace Federal Reserve Chair Jerome Powell. Meanwhile, former Fed Governor Kevin Warsh criticized the central bank and called for sweeping changes to its structure.
Gold prices slipped 0.8% to $3,290 an ounce, while Brent crude held steady near $67 a barrel. U.S. crude edged up to $63.16 a barrel.
This article first appeared on GuruFocus.