Tariff Tensions Shake Global Markets Amid U.S. Earnings Season

Global markets faced volatility on Monday due to renewed U.S. tariff threats against the EU and Mexico. Investors were cautious ahead of the earnings season and inflation data releases. European shares fell, while Wall Street experienced minor fluctuations. Potential U.S. interest rate movements remained a critical focus.

Global equity markets experienced fluctuations on Monday as MSCI's index dipped and U.S. Treasury yields rose, following renewed tariff threats from the United States. Investors were on alert for upcoming inflation data and the commencement of earnings season.

European markets reacted negatively to the U.S. tariff threats, which could see levies on EU and Mexican imports increased to 30%. Amidst these tensions, S&P 500 companies are anticipated to report profits rising by 5.8% from the previous year, according to LSEG data.

While global markets remain jittery, U.S. President Donald Trump continues to pressure the Federal Reserve for more aggressive interest rate cuts. As investors await U.S. consumer price data, markets will closely monitor the impact of tariffs on supply chain costs and consumer spending.

(With inputs from agencies.)