Equity-index futures slid and Asian stocks posted mild losses on Monday as global investors reacted cautiously to rising trade tensions sparked by U.S. President Donald Trump’s latest tariff announcement.
Futures for the S&P 500 declined by 0.4%, while contracts for European stocks fell 0.6%. Asian markets were mixed, with modest gains seen in Hong Kong and mainland China, though broader indices remained flat.
Trump on Sunday announced a sweeping 30% tariff on imports from the European Union and Mexico, intensifying a wave of trade restrictions that in the past week alone extended to countries including Canada, Brazil, and Algeria.
The move has unsettled global markets that have enjoyed a period of record highs. Investors are now testing the likelihood of another reversal from the White House, as seen during previous tariff disputes. Despite concerns, the S&P 500 and the MSCI All Country World Index both reached new peaks earlier this month, signaling cautious optimism.
Meanwhile, silver prices edged higher, nearing levels last seen in 2011, and Bitcoin breached the $120,000 mark for the first time — a potential sign of investors hedging against policy and market uncertainty.
In currency markets, the Japanese yen strengthened against the dollar. Bond futures fell after reports emerged that the Bank of Japan may raise one or more of its inflation forecasts at its upcoming policy meeting.
As markets digest Trump’s aggressive trade stance, analysts warn that investor complacency could be tested further if no retreat comes from the administration in the coming days.
