Global Markets Mostly Higher, Boosted by EU Tariff Delays

By Dow Jones Newswires StaffU.S. stock futures pointed to a solidly higher open when trading resumes on Tuesday after the holiday break.Buoying sentiment somewhat, the U.S. said it would delay implementing additional tariffs on the European Union until July 9 after President Trump on Friday threatened to slap 50% tariffs on the bloc on June 1. The EU's chief trade negotiator, Maros Sefcovic, on Monday said he had "good calls" with U.S. administration officials.Key U.S. data ahead include PCE inflation--the Fed's preferred inflation measure--for April on Friday and the second estimate of first-quarter gross domestic product on Thursday. Tuesday's durable goods orders for April could attract more attention than usual for indications of the impact of tariffs.In early European trading, U.S. Dow Jones Industrial Average stock futures were up 1.1%, S&P 500 futures rose 1.2% and Nasdaq futures gained 1.5%.Asian stock markets closed mixed, with Japan's Nikkei 225 index closing up 0.5% and Hong Kong's Hang Seng also gaining 0.5%. China's benchmark Shanghai Composite declined 0.2% and South Korea's benchmark Kospi ended down 0.3%.European stock markets opened mostly up, with the Stoxx Europe 600 gaining 0.2% in morning trading, while Germany's DAX was up just 0.1%. France's CAC 40 fell 0.1%. The U.K. blue-chip FTSE 100 was up 0.7%.Long-end U.S. Treasury yields dropped from Friday's levels as investors returned to the market. The two-year Treasury yield was flat, the 10-year Treasury yield fell five basis points to last trade at 4.459% and the 30-year Treasury yield fell 7.5 basis points to 4.962%, according to Tradeweb.Still, the dollar fell as uncertainty over U.S. tariffs remains elevated. Markets need to price in at least some probability of prolonged, high tariffs, Pepperstone strategist Michael Brown said in a note. In an environment where market participants seemingly need little excuse to further trim their U.S. exposure, the DXY dollar index could fall to 98.000, he said. The DXY last traded down 0.1% at 99.027 after hitting a one-month low of 98.694 on Monday.The euro was last down 0.1% to $1.1366 after hitting a four-week high of $1.1448 Monday, according to FactSet, as European policymakers continue to push the idea of the currency becoming a viable dollar alternative.In commodities, Brent crude dropped 0.1% to $64.03 a barrel, and WTI crude fell 0.1% to $61.40 a barrel. The European benchmark price for natural gas, the Dutch futures contract TTF, was down 0.4% to 37.1 euros a megawatt hour.Gold futures slumped, extending losses in Monday's session; continuous front-month futures were last down 2.1% at $3,294.20 a troy ounce, though they remain up more than 22% in the year-to-date.Write to Barcelona Editors at [email protected]