• Markets saw European equities and US equity futures recover after President Donald Trump agreed to delay imposing aggressive tariffs on the euro area, underscoring a classic “Trump Pattern” of trade threat and subsequent compromise.

• The pattern, while providing markets with near-term relief, is also generating investor fatigue and concerns over longer-term sentiment damage.

• The tariff deadline reprieve came after a phone call with European Commission President Ursula von der Leyen, who emphasized the need for time to reach a “good deal.”

• Trump’s original tariff threats were also centered on smartphones, calling for production to be moved to the US.

• In equities, Thyssenkrupp AG surged on plans to reorganize as a holding company to cut costs, and Volvo Car AB gained after announcing it would cut jobs worldwide.

• The US dollar, meanwhile, is near two-year lows as enthusiasm for the currency fades and bearish speculative positioning.

• Market attention this week will turn to Nvidia Corp.’s earnings as a growth stock and AI frenzy bellwether, and the Federal Reserve’s preferred inflation metric (PCE index) on Friday.

• Other than this, northern European port congestion signs indicate potential maritime trade war disruption, while a further alliance between US Steel and Japan’s Nippon Steel, as announced by Trump, also caught market attention.