Countdown to Liberation Day: Market Jitters Amid Trump's Tariff Tease

Global markets brace for potential shifts as the European session prepares for Trump's tariff announcement. Wall Street's dip was amplified across Asian markets. With Trump hinting at stringent tariff policies, economic anxiety persists, triggering discussions around recession risks and imminent central bank responses.

Global markets remain on edge as investors eagerly await former U.S. President Donald Trump's forthcoming "Liberation Day" tariff announcement. Futures in Europe suggest a cautious optimism following mixed results in Asia, where markets such as Hong Kong and South Korea rebounded from steep declines.

Despite some reprieve on Wall Street, uncertainties loom large as Trump's latest statements indicate firm trade barriers, squashing any hope for negotiation. This stance, coupled with rising consumer prices, stirs fears of economic stagnation, prompting Goldman to raise recession odds and predict multiple Federal Reserve rate cuts.

This week is pivotal for insight into the U.S. economy, with key employment data and speeches from central bank leaders set to impact sentiment. In Europe, significant data releases and speeches from ECB luminaries like Christine Lagarde provide essential markers, while political undercurrents in France add another layer of complexity to the market landscape.

(With inputs from agencies.)