Market Jitters: Global Markets React to U.S. Tariff Concerns

Global markets started the week with mixed reactions amid U.S. tariff threats and ongoing economic uncertainty. U.S. stocks looked set to rise, driven by possible tariff exemptions, while European markets remained cautious. Data releases and tariff updates are expected to drive market sentiment this week.

Global markets began the week with a cautious tone as the specter of U.S. tariff hikes loomed, affecting investor sentiment worldwide. Early indications showed a higher opening for Wall Street, with S&P 500 futures rising 1.2% and Nasdaq 100 futures climbing 1% at 1218 GMT.

Reports suggested U.S. President Donald Trump's administration might exclude certain sector-specific tariffs, creating tentative optimism among trades although European markets showed caution. A pan-European STOXX 600 saw a slight dip and the German index rose by 0.2% after a surge in manufacturing output.

Market anticipation centers on the April 2 deadline for global reciprocal tariffs, as major economies release purchasing managers' surveys, inflation data, and earnings reports. Despite uncertainty, some analysts advise keeping a strategic eye on consumer sentiment and economic growth projections amidst volatility in stocks, bonds, and currencies.

(With inputs from agencies.)