MARKET WRAPS
Watch For:
Germany foreign trade; trading updates from OMV
Opening Call:
European stock futures were lower early Tuesday. Asian stock benchmarks rose after President Trump's three-week extension to negotiate trade agreements spurred hopes for deals; the dollar weakened; Treasury yields were little changed; while oil futures and gold fell.
Equities:
Stock futures in Europe were tracking lower despite a positive lead from Asian markets. President Trump's barrage of new tariffs drove U.S. stocks lower on Monday and moved trade tensions back to the forefront on Wall Street.
"The relief from a 3-week extension of tariff deadline is a distraction from festering, and possibly widening, tariff risks," cautioned Vishnu Varathan at Mizuho Securities. Uncertainty-driven, but not limited by, tariffs are likely to prolong, not quickly fizzle, he said.
With the economic calendar relatively light, stocks may struggle in the sessions ahead if the White House continues to throw around tariff threats. On the other hand, any deals that reduce levies will be welcomed by Wall Street.
Forex:
The dollar weakened in the morning session amid hopes for trade agreements. President Trump on Monday announced a three-week extension to negotiate deals and sent letters to a handful of nations outlining tariff rates if they didn't strike trade deals with the U.S. by Aug. 1.
The modest reaction in foreign-exchange markets is "perhaps a function of the market pricing in the ability to negotiate down tariffs," MUFG Bank's Michael Wan said. This could also be a continuation of the so-called 'TACO' trade, where 'Trump Always Chickens Out,' the senior currency analyst added.
Bonds:
Global corporate-bond issuance has remained relatively low compared to sovereign-bond supply in the past 12 months, Bank of America credit strategists said. This makes credit attractive as the low supply is a reflection of companies reducing debt levels, the strategists said.
"Companies are being prudent with balance sheets and acquisition activity, in the face of rising geopolitics and tariffs."
Energy:
Oil edged lower amid lingering supply concerns. OPEC+'s decision to quicken the pace of production increases for August cements Capital Economics' view that downward pressure on oil prices will intensify over the next 18 months or so, its climate and commodities economists said.
OPEC+ is expected to continue to focus on regaining market share, and "so have no qualms about adding even more oil into an increasingly saturated market later this year and in 2026," they added.
Metals:
Gold declined amid hopes for possible trade agreements that could reduce the safe-haven allure of the precious metal.
There seems to be renewed optimism over potential trade deals that could de-escalate the global trade war, said Samer Hasn, senior market analyst at XS.com.
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Copper prices were lower. Industrial commodities have pushed lower recently, given renewed trade uncertainty, ANZ Research analysts said.
Details of sectoral tariffs geared towards increasing industrial production in the U.S., including aluminum, steel and copper, were still under discussion, they noted.
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Iron ore futures gained. The black metal's fundamentals remain decent, said Nanhua Futures analysts in a commentary. However, futures valuations have already run significantly ahead, and if the strength in the physical market fails to catch up, there is a considerable risk of a pullback ahead.
"At current levels, chasing the rally is not recommended. It would be better to look for opportunities to go short from higher levels," they said.
TODAY'S TOP HEADLINES
Trump Pushes Global Trade War Back to the Top of His Agenda
WASHINGTON-President Trump reignited his global trade war Monday, renewing his threat to hit partners with punishing tariffs even as he announced a three-week extension to negotiate deals.
Trump signed an executive order extending the date when his so-called reciprocal tariffs would take effect, with a pause previously scheduled to expire at 12:01 a.m. Wednesday. Additionally, Trump sent letters to a handful of nations outlining tariff rates they would pay if they didn't strike trade deals with the U.S. by Aug. 1.
Trump Steps Up His Fight With Brics Nations
President Trump's threat to put new tariffs on countries embracing the policies of the Brics group has added fresh uncertainty to global trade and prompted pushback from Moscow and Beijing.
Trump posted on social media that countries aligning themselves with "the Anti-American policies of Brics, will be charged an ADDITIONAL 10% Tariff." The threat appeared to be a response to a statement put out by the group of emerging economies-whose members include Brazil, Russia, India, China, South Africa and others-that took a swipe at Trump's policies.
EU Still Hopes for Initial U.S. Trade Deal Before Deadline
The European Union is still hoping to secure a bare-bones trade deal with the U.S. by July 9 after President Donald Trump and Treasury Secretary Scott Bessent said that tariffs on U.S. trading partners will revert back to their April rates next month.
"We are continuing to work towards the deadline of the 9th of July and in that sense, political and technical level contact between the EU and U.S. continues," Olof Gill, a spokesperson for the European Commission, said on Monday.
Could an American in Paris Breathe New Life Into LVMH's Celine?
"There was no master plan," said Celine's new creative director, Michael Rider, backstage at his Paris debut for the LVMH luxury brand. "It was very intuitive."
That instinctive approach resulted in a men's and women's spring 2026 collection that felt like an art-school student rummaging around in the Celine archive and putting it together for a night out. Rider, 44, previously worked for Phoebe Philo at Celine from 2008 to 2017, and so her era was well-represented with military-inspired jackets and coats, preppy sweaters and Philo-classic handbags, remixed. There were also sequined black dresses and shrunken tuxedo jackets from the playbook of Rider's predecessor, the Lord of Indie Sleaze Hedi Slimane, and beige tailoring recalling 1990s Michael Kors.
Meta Hires Top Apple AI Expert, Continuing Zuckerberg's Recruitment Push
Mark Zuckerberg added another big name to Meta Platforms' new "Superintelligence" AI division, hiring a top Apple AI researcher as part of a weekslong recruitment push, according to a person familiar with the hire.
Ruoming Pang is the first big name from Apple to jump over to Meta's Superintelligence Lab, a blow to the iPhone maker, which is working to improve its own AI products. Pang, who led Apple's foundation model team, is set to receive a pay package from Meta in the tens of millions of dollars, said the person.
Exxon just warned Wall Street of billion-dollar profit hits. Here's what may cause it.
Exxon Mobil Corp. late Monday warned investors that its second-quarter profit may take a hit of more than $1 billion from lower crude prices, and just under $1 billion from lower natural-gas prices.
Exxon's XOM upstream, or exploration and production, business saw a GAAP profit of $6.8 billion in the first quarter of this year.
Write to singaporeeditors@dowjones.com
Expected Major Events for Tuesday
04:30/NED: May Consumer Spending
04:30/NED: Jun CPI
06:00/FIN: May Foreign trade
06:00/GER: May Foreign Trade
06:30/HUN: Jun CPI
06:45/FRA: May Foreign trade
06:45/FRA: May Balance of payments
07:00/AUT: Apr Foreign Trade
07:00/CZE: Jun Unemployment data
09:00/GRE: May External Trade (provisional data)
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July 08, 2025 00:00 ET (04:00 GMT)
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