Financial markets are expected to see less volatility this week after China stated it would not raise its tariffs on US goods any higher, asserting US threats of further hikes as a “joke.” The Trump administration also announced tariffs exemptions for Chinese electronic products over the weekend. However, more levies could be imposed as part of a probe into semiconductors. These developments are likely to shift investor focus to economic fundamentals and upcoming events, such as the ECB’s interest rate decision and China’s quarterly GDP report.
In Europe, the ECB is expected to continue cutting key policy rates amid worsening growth outlook and inflation risks. Markets anticipate at least three more rate cuts by year-end. Germany’s ZEW economic sentiment for April is set to be released, with consensus suggesting a decline due to ongoing tariff threats from the US. ASML, Europe’s largest chip equipment manufacturer, is expected to report strong first-quarter earnings.
In the United States, the retail sales change for March will be a key indicator for consumer sentiment. Netflix will report quarterly earnings, expected to show strong growth. In APAC, China is set to release its first-quarter GDP figures, with analysts predicting a slowdown in economic growth due to weak consumer demand and trade tensions with the US.
Overall, markets will be closely watching key economic indicators and earnings reports this week, as trade tensions continue to impact global economies.
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