The global market experienced a decline on Monday because of renewed U.S.-China trade tensions which led investors to take defensive positions before the U.S. jobs report and European interest rate reduction.
Reuters
Asian and European steelmakers experienced share price declines because President Donald Trump announced his plan to increase imported steel and aluminum tariffs to 50% starting June 4. The European Union negotiators criticized the move while trade disputes between nations intensified.
Reuters
MUFG strategist Derek Halpenny stated that trade policy changes will continue to occur without any concern from President Trump regarding the resulting market uncertainty. The U.S. dollar faces renewed selling pressure because of this development.
The U.S. dollar index experienced a 0.6% decline because investors became worried about economic effects from rising tariffs. The Japanese yen together with the Swiss franc and gold attracted more investors who sought safe-haven assets.
The S&P 500 futures declined by 0.5% while Nasdaq futures dropped 0.7% which suggested a defensive market opening for the week. The administration faces scrutiny regarding its decision to implement proposed tariffs as investors monitor potential economic consequences.
