Economic Turbulence: Global Markets React to U.S. Policies and Geopolitical Tensions

Global markets are impacted by potential changes in Fed policies and geopolitical issues. Investors remain cautious, particularly concerning new U.S. H-1B visa fees and doubled tariffs on Indian imports, which could affect the technology sector. Key macroeconomic developments are anticipated throughout the week, influencing market expectations.

Wall Street showed signs of a lower opening on Monday as investors expressed caution over the Federal Reserve's potential monetary policy adjustments. U.S. stock futures retreated, with the S&P and Nasdaq futures both slipping by about 0.3% following President Trump's declaration of increased visa charges for U.S. companies.

The finance sector is keeping a close watch as Friday approaches, with the expected release of the Fed's preferred inflation measure. In Europe, Porsche and Volkswagen's decision to reduce profit forecasts due to weak electric vehicle demand affected regional markets. Spain's financial landscape was particularly hit after BBVA increased its bid for Sabadell.

The STOXX 600 index fell alongside Spanish and German stocks, while the Indian market also saw a decline, mainly due to new U.S. visa regulations impacting its key IT sector. Globally, the macroeconomic focus remains on U.S. monetary policy, with numerous Fed officials scheduled to speak. Oil prices dipped amidst geopolitical tensions, inversely impacting gold prices which soared to new highs.

(With inputs from agencies.)