Markets mixed ahead of tariff deadline

Shares move cautiously as the United States weighs higher tariffs on Chinese goods, with investors awaiting data and policy signals.

Markets mixed ahead of Trump's tariff deadline on Chinese goods

World stock markets were mixed on Monday as investors prepared for U.S. President Donald Trump’s deadline on higher tariffs for Chinese imports. In Europe, Germany’s DAX slipped 0.1% while France’s CAC 40 fell 0.2%, and Britain’s FTSE 100 edged up 0.2%. U.S. futures showed small gains, with the S&P 500 and Dow Jones futures up 0.1% and 0.2% respectively. In Asia, Hong Kong’s Hang Seng rose 0.2% and Shanghai’s Composite gained 0.3% as markets digested news of the tariff pause and trade talks.

Oil prices extended declines as supply expectations grew amid OPEC plus output increases and signs of potential progress in the Ukraine conflict ahead of a meeting between Trump and Russian President Vladimir Putin. Taiwan’s Taiex climbed 0.5% helped by a 0.4% rise for TSMC, the world’s largest contract chip maker; Nvidia gained 1.1% and Apple rose 4.2% as techs held up market momentum. A 90‑day pause on proposed tariffs was cited as a factor in trading, with the late Stockholm talks failing to yield a clear extension decision for another 90 days. Meanwhile, entertainment group Paramount Skydance fell 10.5% after the merger that created the company, while Warner Bros. Discovery declined 8%.

Investors also anticipated a batch of U.S. inflation and retail data this week, which will shape expectations for Federal Reserve policy and the broader growth outlook. Traders are weighing the potential inflationary impact of tariff moves against the possibility of a softer demand environment if prices rise or profits tighten.

The market mood shows how tariffs can quietly reshape risk appetite. Traders tolerate volatility when tech and earnings signals are strong, but policy risks remain a constant tailwind that can swing momentum on short notice. A 90‑day pause may buy time for talks, yet it does not remove the policy threat; it simply defers judgment while keeping funds allocated to risk assets under pressure.

Looking ahead, data will do most of the talking. Inflation prints and retail sales will test whether the economy can absorb policy shifts without derailing growth. If data stay tame, markets could stabilize; if not, volatility could rise as investors reassess pricing for risk. The balance between geopolitics, policy, and earnings will define the near term path for equities, bonds, and commodities alike.

Highlights

Markets will keep moving on policy signals and data