Market Jitters: Trade Talks and Tariff Turmoil

Global markets are reacting to potential tariff negotiations involving Canada, Mexico, and China. Positive sentiment boosted Hong Kong stocks, especially in electric vehicles, and the euro bounced back. Crypto trading remains volatile, increasing policy uncertainty. Europe's market is cautiously optimistic amid upcoming earnings reports and U.S.-China trade discussions.

Markets have begun the week with mixed signals amidst ongoing trade negotiations. The delay in tariff decisions regarding Canada and Mexico prompted optimism, suggesting flexibility in global trade talks, including with China.

Canadian Prime Minister Justin Trudeau and Mexico City's Claudia Sheinbaum communicated their border strategy to President Donald Trump, temporarily calming market anxieties and earning political praise for Sheinbaum. Hong Kong stocks, particularly in the electric vehicle sector, surged as investors anticipated a potential trade deal.

Meanwhile, the volatile crypto market saw bitcoin and ether recover slightly, though concerns over policy uncertainty lingered. Traders are closely watching China-U.S. tariff discussions, with President Trump's warning about higher tariffs on the table unless China's fentanyl exports cease. Market focus also remains on European and global earnings announcements, with companies like Alphabet and BNP Paribas reporting soon.

(With inputs from agencies.)