On Monday, global stock markets experienced a robust rally, spurred by reports suggesting a more targeted U.S. tariff strategy from President Donald Trump’s administration. The approach, expected to exclude several sector-specific tariffs, has alleviated some investor concerns, fostering a renewed appetite for risk.
This shift in tariff strategy comes amid persistent market volatility and apprehensions about potential tariffs’ impact on the global economy and corporate profits. Economic indicators released on Monday showed a rise in the S&P Global’s flash U.S. Composite PMI Output Index, signaling an expansion in the manufacturing and services sectors. However, ongoing worries about tariffs and reduced government spending continue to dampen business confidence.
In currency markets, the possibility of targeted tariffs elicited a rise in U.S. treasury yields, while the dollar surged against several currencies, including the Turkish lira, paralleling significant political developments in Turkey. Meanwhile, oil prices increased as investors contended with fresh U.S. sanctions on Iran and potential negotiations over the Ukraine conflict.
(With inputs from agencies.)
