Global stock markets started the week on a cautious note, with MSCI’s world equities index slipping as investors braced for a busy stretch of central bank meetings and key economic updates. Oil prices also retreated, weighed down by expectations of higher production, while Taiwan’s dollar surged to its strongest level in nearly three years against the U.S. dollar. Meanwhile, a surge in prices paid by businesses for materials and services signaled that tariffs are adding fresh inflationary pressures, drawing further attention ahead of the U.S. Federal Reserve’s looming interest rate decision.
MSCI’s benchmark for global stocks nudged down by 0.06%, closing at 848.70, while Europe’s STOXX 600 managed to edge up by 0.2%, reflecting mixed sentiment across regions. Holiday closures in major economies like Britain, China, and Japan contributed to thinner trading volumes, adding to the market’s subdued tone. On Wall Street, the three major indexes clawed back some earlier losses, but the S&P 500 was still poised for its first drop after an impressive nine-day winning streak, as investor mood soured amid fresh trade policy uncertainty from the White House.
A key trigger behind Wall Street’s hesitation was President Trump’s announcement of a 100% tariff on foreign-made movies — a move that blindsided markets and cast doubt over the administration’s next steps on trade. Shares of major media and streaming giants like Netflix and Paramount Global fell sharply, dragging on broader indexes. “Markets crave stability, but today they woke up to more uncertainty,” noted Adam Sarhan, CEO of 50 Park Investments. His warning that other industries might soon face similar levies added to the cautious atmosphere gripping investors.
Despite these jitters, optimism over a possible thaw in U.S.-China trade tensions has buoyed markets in recent sessions. Trump signaled ongoing talks with China and stressed his focus on achieving a “fair” agreement — language that helped European stocks hover near pre-tariff levels seen before his early April announcement rattled global markets. Yet, the mood remained fragile, with the Dow Jones Industrial Average up 0.14% at mid-morning, while the S&P 500 dipped 0.33%, and the Nasdaq Composite slipped 0.50%. Another notable drag came from Berkshire Hathaway, as shares fell following Warren Buffett’s announcement that he plans to step down as CEO.
In the oil market, prices tumbled more than 2% after OPEC+ announced an accelerated timeline for ramping up output — a development that unsettled traders already worried about shaky demand forecasts. U.S. crude dropped to $56.66 a barrel, while Brent crude fell to $59.75, sparking concerns that the supply-demand imbalance may widen. Meanwhile, in currency markets, the Taiwan dollar extended its rally for a second day, hitting a low of 28.815 per U.S. dollar, before settling near 28.990. This surge stirred speculation over potential revaluations of Asian currencies to secure trade advantages, prompting Taiwan’s President Lai Ching-te to dismiss rumors of behind-the-scenes exchange rate negotiations with Washington.
Bond markets also saw movement, with yields on U.S. Treasuries edging higher. The benchmark 10-year Treasury yield rose to 4.343%, while the two-year yield, closely tied to Fed policy expectations, ticked up to 3.845%. Meanwhile, in precious metals, gold prices leapt, supported by a softening U.S. dollar and a surge in safe-haven demand as traders braced for the Federal Reserve’s upcoming decision. Spot gold rose 2.3% to $3,314.59 per ounce, while U.S. gold futures climbed 2.52% to $3,313.20, reflecting a rush into assets seen as protection against market turmoil and geopolitical risks.