Markets Surge as Trump's EU Tariff Threat Delayed

Global markets rose on Monday after U.S. President Donald Trump postponed his threatened 50% tariffs on the European Union. This delay follows negotiations that require more time, shifting investor confidence towards Europe and Asia amid concerns of a potential U.S. recession and dollar devaluation.

Global markets witnessed a lift on Monday, buoyed by U.S. President Donald Trump's decision to delay imposing 50% tariffs on the European Union until July. This announcement marks a brief respite from escalating trade tensions, fueling investor shifts towards European and Asian markets as recession concerns loom over the U.S.

Trump's postponement follows a request from European Commission President Ursula von der Leyen for more negotiation time, underscoring the unpredictable nature of his administration's trade policy. Analysts noted the move as a catalyst for investors reallocating portfolios, anticipating a devaluing dollar and rising U.S. interest rates.

Meanwhile, the euro gained strength, reaching its highest value since late April, while other currencies saw mixed performances. Trading volumes were light due to U.S. and UK holidays, with looming inflation reports and debt concerns maintaining focus on economic indicators affecting global market dynamics.

(With inputs from agencies.)