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Wall Street set for strong open after Monday's holiday

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Investors' focus on Nvidia ( NVDA ) earnings, Fed speeches

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Dollar headed for fifth-straight monthly decline

By Rae Wee

SINGAPORE, May 27 (Reuters) - Shares were mixed on

Tuesday as U.S. President Donald Trump's postponement of his

threatened 50% duties on European Union shipments reinforced the

unpredictability of his trade policies and kept investor

sentiment fragile.

Wall Street futures and FTSE futures were up sharply in the

Asian session, following a holiday in the U.S. and the UK at the

start of the week, though shares elsewhere reversed their

short-lived rally.

Nasdaq futures and S&P 500 futures each rose

0.9%, while FTSE futures tacked on 0.87%, pointing to a

strong open during the cash sessions later in the day following

Trump's U-turn on his threat to impose 50% tariffs on imports

from the EU next month, restoring a July 9 deadline.

However, MSCI's broadest index of Asia-Pacific shares

outside Japan fell 0.55% and EUROSTOXX 50

futures eased 0.15%.

"While the delay in EU tariffs has provided a short-term

boost to futures markets, underlying concerns about trade

relations and upcoming economic indicators continue to weigh on

investor sentiment," said Aaron Chwee, head of wealth advisory

at OCBC.

A major focus for investors this week will be results from

Nvidia ( NVDA ) on Wednesday, where the AI bellwether is

expected to report a 65.9% jump in first-quarter revenue.

Speeches from a slew of Federal Reserve policymakers and

Friday's U.S. core PCE price index are also due, which could

provide clues on the outlook for U.S. rates.

In Asia, Japan's Nikkei was down 0.1%, while Hong

Kong's Hang Seng Index eased 0.18%.

China's CSI300 blue-chip index fell 0.56%.

Yields on super-long Japanese government bonds fell early in

the session, retreating from their all-time highs in the wake of

last week's heavy selloff in the bonds.

Bond yields, particularly on the long end, have surged

around the world as concerns mount over growing fiscal deficits

in advanced economies, led by the U.S. and Japan.

U.S. Treasury yields were steady on Tuesday, with the

two-year yield last at 3.9787% and the benchmark

10-year yield at 4.4773%.

LOSS OF CONFIDENCE

The dollar struggled to find its footing and was headed for

a fifth straight month of declines against a basket of

currencies, which would mark the longest such losing

streak since 2017.

The euro hovered near a one-month high at $1.1379,

while the yen was steady at 142.84 per dollar.

Trump's flip-flops on tariffs and concerns over the

worsening U.S. deficit outlook have undermined sentiment towards

U.S. assets and in turn been a drag on the dollar.

"A U.S. dollar regime change could be in the making in the

long term after it appears to have peaked recently," said David

Meier, an economist at Julius Baer.

"Erratic U.S. policymaking, the tense fiscal situation, and

large external indebtedness, against the backdrop of the twin

deficit, suggest that a weaker USD is the route of least

resistance."

And as the dollar loses some of its safe-haven appeal,

investors have instead sought alternatives such as gold, sending

prices to record highs this year.

Gold last traded 0.3% lower at $3,331.79 an ounce.

Elsewhere, oil prices eased on Tuesday as investors weighed

the possibility of an OPEC+ decision to further increase its

crude oil output at a meeting later this week.

Brent crude futures declined 0.22% to $64.60 a

barrel, while U.S. West Texas Intermediate crude fell

0.33% to $61.33 per barrel.