TOKYO: European shares were mostly higher on Monday, following gains across Asia, even as uncertainty lingered over President Donald Trump’s latest tariff announcements.
Tech giant Nvidia surged 5.2% in pre-market trading after its CEO confirmed that the Trump administration would allow sales of its advanced H20 chips to China, used in artificial intelligence development.
Germany’s DAX rose 0.3% to 24,222.95, while France’s CAC 40 inched up less than 0.1% to 7,812.14. The UK’s FTSE 100 was largely flat at 8,996.90.
US futures were mixed — the S&P 500 gained 0.4%, while the Dow Jones Industrial Average slipped 0.1%.
Asian Markets Rally
In Asia, Japan’s Nikkei 225 added 0.6% to close at 39,678.02. Investors were cautious ahead of Sunday’s upper house election, where the ruling pro-business Liberal Democratic Party may need new coalition partners to maintain power.
Australia’s S&P/ASX 200 climbed 0.7% to 8,630.30, South Korea’s Kospi rose 0.4% to 3,215.28, and Hong Kong’s Hang Seng jumped 1.6% to 24,590.12. However, China’s Shanghai Composite slipped 0.4% to 3,505.00 after official data showed slowing economic growth.
China’s economy grew 5.2% year-on-year in the latest quarter, slightly down from 5.4% in Q1. Quarter-on-quarter growth stood at 1.1%.
Despite concerns over Trump’s proposed tariffs — set to take effect on August 1 — analysts suggest he might still soften or delay them, leaving room for negotiations.
Wall Street and Economic Outlook
On Wall Street Monday, the S&P 500 edged up 0.1%, the Dow rose 0.2%, and the Nasdaq gained 0.3%. Analysts warn that implementing all the proposed tariffs could tip the US economy toward recession and worsen the national debt, especially following recent tax cuts.
This week brings potential market-moving events. US inflation data, due Tuesday, is expected to show a rise to 2.6% in June from 2.4% in May. Earnings season also kicks off, with results from JPMorgan Chase and other major banks on Tuesday, Johnson & Johnson on Wednesday, and PepsiCo on Thursday.
Industrial supplier Fastenal beat earnings estimates and saw its stock rise 2.9%, despite ongoing sluggish demand. Kenvue shares rose 2.3% after the company announced CEO Thibaut Mongon’s resignation. The Johnson & Johnson spinoff is undergoing a strategic review to simplify operations and its product portfolio.
Crypto Surges Ahead of Regulatory Week
Cryptocurrency markets were highly active, with bitcoin hitting new highs. Washington hosts “Crypto Week” this week, where lawmakers will review legislation aimed at establishing the US as a global crypto leader.
Commodities and Currency
In energy, US crude dropped 18 cents to $66.80 per barrel, while Brent crude eased 9 cents to $69.12.
In currency trading, the US dollar edged up to 147.73 yen from 147.72 yen, while the euro strengthened to $1.1685 from $1.1666.
