Global stocks mixed as traders react to Trump’s tariff pledge on steel, aluminum
Global stocks were mixed Monday as traders assessed President Donald Trump’s pledge to impose tariffs on all imports of steel and aluminum.
Europe’s Stoxx 600 index was up 0.3%, extending gains into an eighth consecutive week, the longest such winning streak since March 2024. Mining stocks slipped following Trump’s latest tariff salvo. US equity futures rose, signaling a rebound from Friday’s pullback, News.Az reports, citing Bloomberg.
A benchmark of Asian shares dropped the most in a week.
BP Plc shares surged 6.7% after one of the world’s most aggressive activist investors was revealed to have built a stake in the company, seeking to end years of under-performance.
The dollar climbed against major peers including the Canadian dollar and the yen on speculation rising tariffs may boost inflation and limit the Federal Reserve’s ability to cut interest rates. Yields on the 10-year Treasury were steady.
Trump’s intention to announce a 25% levy on steel and aluminum Monday added to already tense sentiment before Federal Reserve Chair Jerome Powell’s semiannual congressional testimony this week and the US President’s possible unveiling of reciprocal tariffs on “everyone” this week. Trump said the metals tariffs would apply to imports from all countries, though he didn’t specify when they would take effect.
The gains in US stock futures suggest some buyers may want to get back into the market following the 1% selloff retreat in the S&P 500 at the end of last week. There are a number of key events on the radar in coming days, including Powell’s speech and US CPI data.
Separately, Trump said Elon Musk’s government efficiency team has found irregularities while examining data at the US Treasury Department.
Powell will deliver his semi-annual testimony at a time when officials are signaling they’re not in a hurry to further ease policy. Nonfarm payrolls moderated last month and revisions show US job gains were softer but still solid in 2024. Inflation data due this week may help buttress those arguments and underpin market pricing for just one Fed rate cut this year.
Commodities were muted as traders waited for more details on when and how Trump’s latest tariffs would operate. Aluminum futures in London — the global benchmark — were steady, while copper was little changed. Gold rose to a record as the noise around tariffs added to uncertainty in financial markets.
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