Global stock markets showed mixed performances on Monday, while the US dollar gained strength amid an intense scramble by countries to finalise trade agreements before President Donald Trump’s looming tariff deadline.
Oil prices edged higher despite OPEC and its allies agreeing over the weekend to boost production more than analysts had anticipated.
According to Richard Hunter, head of markets at Interactive Investor, tariff tensions are set to dominate market sentiment again this week, following significant weekend developments.
President Trump confirmed plans to issue formal tariff notifications to multiple countries on Monday, ahead of Wednesday’s critical deadline for finalising trade deals. He cautioned that if negotiations falter, US import tariffs will revert to the steep rates imposed back in April.
Treasury Secretary Scott Bessent said, however, that the measures would not be applied until August 1, instead of the July 9 cut-off that had been set by Trump.
Trade Nation analyst David Morrison said added time wasn’t calming markets.
“While (Bessent) downplayed the idea of this being a ‘new deadline’, the market took little comfort, interpreting the remarks as an extension of trade risks,” he said.
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The White House has said several deals were in the pipeline but only two have been finalised so far with Britain and Vietnam.
Governments from major trading partners, including Japan, India, the European Union, and South Korea, have fought for the past three months to get agreements.
Markets remained on edge as President Donald Trump threatened to impose an additional 10 percent import tariff on any nation he deemed supportive of BRICS, the emerging economies alliance that includes Brazil, Russia, India, and China among its 11 members.
Despite this renewed tariff anxiety, official data released Monday revealed a strong uptick in German industrial output for May, fuelling optimism that Europe’s largest economy may finally be recovering. The positive figures helped German stocks outperform their peers in London and Paris.
In Asia, major markets largely held steady, while US equities opened weaker following record highs for the S&P 500 and Nasdaq Composite last Thursday before the extended holiday break.
Patrick O’Hare, an analyst at Briefing.com, suggested that while trade uncertainty was adding pressure, markets were also experiencing a natural pause after their recent impressive rally.