US markets are closed for Memorial Day today, but other markets around the world are open and reacting to news over the weekend that President Trump has agreed to postpone the launch of 50% tariffs against the EU from June 1 to July 9 to allow time for more talks.
Continental Europe markets are rallying on this news with Frankfurt up 1.5%, Paris up 1.2% and Milan up 1.3%. London is down 0.2%. Bitcoin is up 1.9% while Gold is down 0.8%, reversing some of Friday’s moves, suggesting investors are viewing this as a “risk-on” event, though commodity and currency trading is quiet so far today.
It’s bank earnings week in Canada headlined by Bank of Nova Scotia on Tuesday, Bank of Montreal and National Bank on Wednesday, finishing with Royal Bank and CIBC on Thursday. Investors may look to commentary and loan loss provisions for signs of what impact, if any, the tariff war is having on the Canadian economy. In the US, Nvidia on Wednesday and Costco on Friday are the most notable reporters.
In economic news this week, the Reserve Bank of New Zealand is expected to announce a 0.25% interest rate cut on Wednesday. US durable goods orders are due tomorrow, with a GDP update Thursday and Core PCE inflation plus Chicago PMI to close out the month on Friday. Friday also brings Canada Q1 GDP.