Global Markets Weaken Amid Tariff Uncertainty, Powell Testimony Ahead
Stocks declined on Tuesday as traders exercised caution following the latest tariff news and ahead of Federal Reserve Chair Jerome Powell's testimony and key US inflation data.
Market Movements:
* S&P 500 and Nasdaq 100 futures retreated after President Donald Trump imposed tariffs on US imports of steel and aluminum.
* Europe's Stoxx 600 index underperformed due to declines in mining and travel shares.
* Gold reached a new record high, while the US dollar index extended gains from Monday.
* Treasury yields increased across the curve, reflecting investors' uncertainty about the potential impact of Trump's actions on global trade, corporate earnings, and inflation.
Key Events and Economic Data:
* EU to respond to potential US tariffs, escalating transatlantic trade dispute.
* Investors to focus on US CPI data and Powell's testimony before Congress this week.
* UK Bank of England rate-setter Catherine Mann voted for a half-point rate cut last week to address a weakening economy.
Corporate Highlights:
* Coca-Cola beat Wall Street profit expectations driven by higher beverage prices.
* Travelers Cos announced $1.7 billion in catastrophe losses related to California wildfires.
* BP pledged major changes after reporting a sharp drop in profit.
* Kering shares rose on stronger-than-expected profits and signs of stabilization at Gucci.
* Robinhood launches US equity options trading for UK customers.
Key Market Indicators:
* S&P 500 futures: -0.4%
* Nasdaq 100 futures: -0.6%
* Dow Jones Industrial Average futures: -0.2%
* Stoxx Europe 600: +0.1%
* Bloomberg Dollar Spot Index: Little changed
* Euro: +0.1% to $1.0319
* British Pound: +0.2% to $1.2387
* Bitcoin: +0.2% to $97,629.01
* Ether: +0.5% to $2,679.16
* 10-year Treasury yield: +3 basis points to 4.53%
* West Texas Intermediate crude: +1.7% to $73.57 a barrel
* Spot gold: -0.7% to $2,888.56 an ounce