Wall Street and European shares softened in Asia on Monday, triggered by a fresh wave of threats in the U.S. tariff wars that have kept investors on edge. President Donald Trump’s latest announcement to impose a 30% tariff on most imports from the EU and Mexico starting August 1 has heightened market tensions. Despite fears, investors remain hopeful this move may just be posturing.
The European Union has extended its suspension of countermeasures to U.S. tariffs until early August, advocating for a negotiated agreement. Germany’s finance minister, however, called for firm action should the tariffs be implemented. The market reaction has been muted, with stocks experiencing minor fluctuations as the dollar showed limited gains against the euro.
In the bond market, U.S. Treasury securities saw marginal gains as investors seek safety, while future expectations indicate minor policy easing by the Federal Reserve. Meanwhile, economic indicators such as U.S. consumer prices and retail sales data will be closely scrutinized for signs of tariff impacts. Commodities saw gold rising slightly, with Brent oil edging higher on speculation of potential new sanctions on Russia.
(With inputs from agencies.)
