A look at the day ahead in European and global markets from Rocky Swift
It’s tax day in the United States, the deadline for most Americans to file their returns to Uncle Sam, but there’s far less clarity in the rest of the world about what trade partners will pay in U.S. trade tariffs tomorrow, let alone next quarter.
Who will catch any tax cheats after U.S. President Donald Trump gutted the Internal Revenue Service is another question, but a relief rally limped along in Asian markets after Trump suggested he might grant exemptions on auto-related tariffs.
Japan’s Nikkei eked out gains for a second straight day as car makers rallied, but stock futures pointed to mixed to lower openings in European and U.S. markets.
Pharma looks to be the next sector to be targeted by Trump’s tariffs, which would be a blow for European drugmakers like Novo Nordisk, whose weight-loss drugs have been global blockbusters in recent years.
The Trump administration is proceeding with probes into imports of drugs and chips as part of a bid to impose tariffs on those sectors, Federal Register filings on Monday showed.
Disappointing first quarter results from luxury group LVMH on Monday added to evidence that U.S. consumers are getting antsy about the risks of a recession.
The ever-evolving tariff talk has tarnished the safe harbour status of the U.S. dollar and Treasuries. The greenback hovered near a three-year low against the euro and a six-month low against the yen in Asia trading. Gold, the ultimate defensive asset, edged higher toward the record it touched on Monday.
Key developments that could influence markets on Tuesday:
-UK jobs market data for February
-Q1 earnings from J&J, Bank of America, United Airlines and Citigroup
-U.S. import prices for March, which projected to be unchanged, after rising 0.4% in February
-Speeches from Federal Reserve Bank of Richmond President Thomas Barkin at the University of North Carolina and Fed Governor Lisa Cook in Washington DC.
-Canada reports inflation for March, which likely remained unchanged from the previous month at 2.6%.
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(Editing by Kim Coghill)
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