Global Markets Today: Stocks Drift, Dollar Slips Amid US-China Trade Standoff

Global stock markets remained range-bound on Tuesday, while the US dollar continued to lose ground—on track for its sharpest monthly drop in years—as investors brace for the impact of the escalating US-China trade standoff on corporate earnings and upcoming economic data.

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🔻 US Dollar Pressured as Trade Tensions Rise

The US dollar edged lower after US Treasury Secretary Scott Bessent remarked that it’s “up to China to de-escalate” trade tariffs, with most US exports to China still facing a punitive 125% tariff. Despite a modest recovery in the S&P 500 index from early-April losses, the dollar has failed to stage a meaningful rebound.

• EUR/USD rallied to $1.1409, on track for a massive 5% monthly gain—its strongest in nearly 15 years.
• USD/CHF slipped further, with the dollar down 7% against the Swiss franc—its steepest monthly drop in a decade.

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📉 Stocks Lack Direction, Await Key Data

• S&P 500 Futures were up 0.14%, while Nikkei Futures gained 0.38%.
• Hong Kong’s Hang Seng Index rose 0.3%, while mainland China’s blue-chip CSI 300 fell 0.2%.
• JP Morgan analysts warned of weakening resilience in hard data, noting a 42% drop in China’s shipments to the US over the last 10 days, a sign that supply chain stress may soon intensify.

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🛢️ Commodities React to Weak Dollar

• Gold surged to $3,333/oz, up nearly 7% in April and 27% year-to-date, driven by safe-haven demand.
• Brent crude oil dipped slightly to $65.68 per barrel, with traders awaiting signals on future US-China trade negotiations.

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🗳️ Other Global Headlines

• Canada Election 2025: The Liberal Party is expected to win re-election amid rising nationalism and concerns over US interference.
• European Inflation: Key CPI readings from Spain and Belgium are due today.
• Iberian Blackout: Power is gradually being restored after a massive grid failure in Spain and Portugal.

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💼 Earnings Watch

Investors are watching closely as several financial and tech giants report this week:

• Reporting Today: HSBC, BP, Deutsche Bank, Adidas, Coca-Cola, General Motors, Visa.
• Later This Week: Apple, Microsoft, Amazon, Meta Platforms.

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🧠 What to Watch

• US GDP (Q1) estimate
• US PCE Inflation (March)
• Nonfarm Payrolls (April)
• Any fresh tariff announcements or Fed commentary

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