Stock Futures Climb as Optimism Grows Over Targeted US Tariffs: Market Update

Finance

Stock Futures Climb as Optimism Grows Over Targeted US Tariffs: Market Update

March 24, 2025

Stock Futures Rise on Hope of Targeted US Tariffs: Markets Wrap

(Bloomberg) — US and European stock-index futures climbed on signs that the next round of President Donald Trump’s tariffs may be more measured than previously suggested.

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Futures for the S&P 500 and Euro Stoxx 50 rose along with equities in China, though a broader gauge of Asian shares edged lower. The 10-year US Treasury yield advanced. The dollar was little changed while the yen declined.

Sentiment is improving as the next round of US tariffs due April 2 is poised to be more targeted than the sprawling, fully global effort Trump has otherwise mused about, according to officials familiar with the matter. Still, traders remain on edge with officials in China and Australia warning of widespread shocks to the global economy from US trade policy.

“The news of more targeted tariffs has been taken positively during early Asian trading hours, but there is still a lot of nervousness heading into next week’s actual announcement,” said Khoon Goh, head of Asia research at ANZ Group Holdings Ltd. “There could always be some unexpected development, or President Trump could mention something this week that suggests a harder line. So it’s hard for markets to adequately price in the risk at this stage.”

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Trump will announce widespread reciprocal tariffs on nations or blocs but is set to exclude some, and — as of now — the administration is not planning separate, sectoral-specific tariffs to be unveiled at the same event, as Trump had once teased, officials said.

Australia’s Treasurer Jim Chalmers warned the impact of the new US administration’s policies will have a “seismic” impact on the global economy, while Chinese Premier Li Qiang said the country is prepared for “shocks that exceed expectations.”

Shares in mainland China gained Monday. Helping the sentiment was news that Jack Ma-backed Ant Group Co. has used Chinese-made semiconductors to develop techniques for training AI models that would cut costs by 20%. A gauge of Chinese technology shares in Hong Kong has advanced 26% this year as sentiment was boosted by potential growth of AI applications after DeepSeek’s release of a lower-cost large language model.

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DeepSeek has “really ignited investor optimism,” said Janet Perumal, head of Asia Pacific investments at Wellington Management. There is room for China’s stock valuations to expand further, she said in Hong Kong.

Indonesia’s stocks tumbled on Monday, extending a rout as the country’s economic outlook deteriorates.

Elsewhere, the Canadian dollar inched up after Prime Minister Mark Carney called a snap election for April 28, with polls indicating a close contest. Carney also announced late Friday measures to mitigate the economic impact of US tariffs, including temporary deferrals of corporate income tax and consumption tax remittances.

Investors are also bracing for more volatility in Turkish assets after a key opposition politician was formally arrested. The nation’s central bank held a “technical meeting” with commercial lenders on Sunday in preparation for more volatility, while the markets regulator imposed a short selling ban on stocks.

In commodities, oil was steady as traders weighed the fallout from more US tariffs and an upcoming boost in OPEC+ supply. Bullion traded around $3,022 an ounce, near a record high reached on Thursday.

This week, traders will be closing watching activity data in Europe, UK and the US for indications on whether economies are slowing from the tariff uncertainty. Inflation data in Australia is due before US Personal Consumption Expenditure data, the Federal Reserve’s preferred measure of consumer prices, at the end of the week.

Some key events this week: