Dax and Euro Stocks Relief, Crude Oil Jumps to $73 on Trade War Bluff
The German Dax had some decent gains today along with European stocks, as trade tariffs from the US haven’t materialized, sending Oil prices up as well.
The S&P 500 has climbed 37 points also, to a session high of 3,750 points, reflecting improving risk sentiment. Falling Treasury yields provided a boost to equities, while also weighing on the US dollar, which hit its lowest level of the day. With both bonds and stocks rising, the market appears to be embracing a more optimistic outlook.
Trump’s Trade Tactics: A Repeated Pattern
Trump’s latest trade dispute appears to be following a familiar script. Just last week, he declared that Canada and Mexico had no options to prevent tariffs. Days later, those tariffs vanished with little fanfare, and no major concessions from either country. He escalated tensions, floated drastic measures, and then quickly backed down in exchange for minor border security commitments—most of which had already been in place. The same cycle looks set to repeat in 30 days.
Crude Oil Chart Daily – Market Optimism Sends WTI $2.5 Higher
The market is growing more confident about global economic stability and the reduced likelihood of a full-blown trade war. White House advisor Peter Navarro even suggested that Trump might ease or remove tariffs on China, further fueling the positive sentiment. As a result, risk assets have rallied, with WTI crude Oil jumping $2.5 from the bottom and touching $73 a while ago. However moving averages are still acting as resistance at the top, so this might be a good opportunity to open a sell Oil trade.
The Canadian dollar remains the biggest mover, nearing recent lows but resisting a breakout to a 20-year high. Although Trump didn’t remove tariffs outright, the 30-day delay was enough to ease some pressure. European equities also rebounded, with Spain, Italy, and France leading gains, while the UK FTSE saw only a slight dip.
European Market Closing Changes
- Stoxx 600: Gained +0.3%, reflecting a broadly positive risk sentiment across European equities.
- German DAX: Rose +0.4%, supported by strong industrial data and improving trade prospects.
- France CAC: Increased +0.7%, with gains led by financials and consumer sectors.
- UK FTSE 100: Slight decline of -0.1%, underperforming despite Trump’s suggestion that the UK might be exempt from tariffs.
- Spain IBEX: Led European markets with a strong +1.5% rise, driven by banking stocks and improving economic sentiment.
- Italy’s FTSE MIB: Advanced +1.2%, benefiting from renewed confidence in the country’s economic recovery.
Despite the temporary reprieve, history suggests it won’t be long before fresh reports emerge about stalled negotiations and renewed tariff threats. The back-and-forth strategy has become a hallmark of Trump’s trade approach, leaving markets in a state of uncertainty. Despite overall positive momentum in European markets, the FTSE 100’s underperformance was notable, especially given Trump’s tariff reassurance. While other indices saw strong gains, the UK’s blue-chip index struggled, likely weighed down by broader economic concerns or sector-specific weaknesses. Looking ahead, market focus remains on global trade developments, inflation trends, and central bank policies, which will continue to shape equity movements.
US WTI Crude Oil Live Chart
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