• Global markets enter a more uncertain trade posture in June with President Donald Trump announcing a doubling of tariffs on the imports of steel and aluminum to 50% effective on Wednesday. The move, which targets pivotal allies Canada, Mexico, Japan, South Korea, and Germany, will further escalate the global trade war even though China is a minor direct exporter of these goods to the United States.

• Following a strong May, US stock futures slid as investors reacted to the re-emerging tariff threats and ongoing trade tensions with China, which Trump claims has “totally violated its agreement.” Asian markets declined in general in response to the rising trade tensions and geopolitical uncertainty from the Russian-Ukraine conflict despite Chinese factory activity recording slower contraction. Oil prices rocketed after OPEC+ agreeing to a modest July output rise.

• In Europe, the ECB is also slated to cut interest rates on Thursday, despite an economy doing better than anticipated, as uncertainty around tariffs by the U.S. creates a challenging environment to make judgments. Meanwhile, Elon Musk has relinquished his leadership of the “Department of Government Efficiency” (DOGE), something considered a positive for Tesla stock as he returns to his businesses after earlier criticism of his foray into government for damaging Tesla’s image and sales. Investors eagerly wait now for a busy week of economic reports, Federal Reserve declarations, and big earnings announcements, such as Nvidia’s.