European markets are poised for a positive start as the new trading week kicks off. Anticipation is high, with the UK’s FTSE 100 index projected to rise by 14 points, reaching 8,667. Germany’s DAX is expected to climb 83 points to 22,966, while France’s CAC should see an increase of 9 points to 8,057. Additionally, Italy’s FTSE MIB is set for a significant jump, anticipated to gain 171 points and hit 38,391. This optimistic outlook comes from data provided by IG.
Monitoring Key Economic Indicators
Traders are keenly awaiting the preliminary Purchasing Managers’ Index (PMI) data from the U.K., France, Germany, and the broader Eurozone. This information will offer crucial insights into the health of business activity across both the manufacturing and services sectors in the region.
Asian Markets and U.S. Futures
In the Asia-Pacific region, markets mostly traded higher on Monday. However, investors are keeping a close watch on the upcoming April 2 tariff deadline set by U.S. President Donald Trump. Meanwhile, U.S. stock futures are showing signs of strength, indicating the potential for equities to maintain their upward trajectory.
Last Friday was a positive day for U.S. markets, with all three major averages closing higher. This rally was fueled by President Trump’s comments suggesting there may be some "flexibility" regarding his reciprocal tariff plan. However, he did not explicitly indicate that any tariffs would be exempt, a point he previously hinted at for the automotive sector.
Tariff Developments
A recent report from the Wall Street Journal hints that the upcoming tariffs might be narrower in scope and could exclude specific industry duties. This information comes from a source within the administration, adding to the complexity of the current trade environment.
As the week unfolds, all eyes will be on these economic indicators and trade developments as they could significantly influence market movements. Stay tuned for further updates as the situation evolves.
