• Global markets are reacting positively to speculation that the US may ease some tariffs, sparking a wave of optimism among investors. Here are the key developments shaping the financial landscape today.

Stock Market Performance:

• S&P 500 futures increased by 0.6%, Nasdaq 100 futures rose by 0.7%, and Dow Jones futures climbed by 0.5%, signaling renewed confidence in equity markets.
• European and Asian markets also gained, with the MSCI Asia Pacific Index rising by 1% and the MSCI Emerging Markets Index jumping by 1.8%.
•  

Potential Tariff Relief:

• US Commerce Secretary Howard Lutnick suggested that the administration is considering a compromise on tariffs imposed on Mexican and Canadian goods under the North American free trade agreement.
• He indicated that tariffs might be adjusted to a middle ground rather than being completely removed.
•  

Trump’s Address to Congress:

• The president acknowledged that the tariff policies may cause an adjustment period but defended them as part of his strategy to reshape the US economy.
• He called for an end to the $52 billion semiconductor subsidy program and reaffirmed the 25% tariffs on aluminum, copper, and steel.
•  

Cryptocurrency and Commodities Update:

• Bitcoin remains near $87,450, with price volatility persisting. Ethereum saw a 1.2% gain, trading around $2,204.
• Brent crude oil remained stable, while gold is holding near record highs amid global economic uncertainty.
•  

Key Economic Events to Watch This Week:

• Eurozone services PMI and producer price index (Wednesday)
• US ADP employment report and ISM services index (Wednesday)
• European Central Bank rate decision (Thursday) US trade data and jobless claims (Thursday)
• US Non-Farm Payrolls and unemployment report (Friday) Federal Reserve Chair Jerome Powell’s keynote speech (Friday)

What’s Next?:

• Markets have reacted swiftly to the potential softening of tariffs, reflecting investor sentiment that a full-scale trade war could still be avoided.
• However, while short-term relief rallies are encouraging, the long-term sustainability of this market optimism will depend on concrete policy decisions and economic fundamentals.