Financial markets are expected to be less volatile this week after China suggested that it won't be raising its 125% tariff on US goods any higher — dismissing potential further hikes from the US as a "joke". The Trump administration also announced tariff exemptions for electronic products coming from China over the weekend, although more levies could arrive as part of a state probe into semiconductors.
This shift is likely to refocus investors’ attention on economic fundamentals and key events, including the European Central Bank’s (ECB) interest rate decision and China’s quarterly GDP. Additionally, global companies will begin the earnings season, with key results from ASML and Netflix in the spotlight. These earnings reports will offer insights into the broader economic impact of escalating trade tensions and help shape future market sentiment.
