A look at the day ahead in European and global markets from

Kevin Buckland

European investors still staggering from a nearly 12% plunge

over three days in their regional stock benchmark are waking up

to a futures market pointing more than 3% higher.

So what gives?

President Donald Trump has hardly backed down in his assault

on perceived trade disparities, even doubling down on China by

threatening additional 50% levies that would take the combined

total well above 100%.

Wall Street didn't exactly have a stellar day - although an

overall flat close would have come as a welcome respite after a

10% tumble over the previous two sessions.

The most remarkable thing about Monday's trading was the

volatility, with the VIX fear gauge popping above 60 for

only the second time since the pandemic.

All of this raises suspicions of whether the bounce in

markets will last, and even a 3% rebound in the STOXX 600

wouldn't make up much of the rout since Trump's

"Liberation Day" tariff announcement last Wednesday.

But a glance around Asian markets quickly reveals the

standout winner: Japan.

Among the first signs that Trump's tariffs may after all be

just a starting point for negotiations, Treasury Secretary Scott

Bessent is leading a team that will talk trade with Tokyo in the

coming days.

At the same time, there is a definite differentiation across

geographies. Japan's 6% stock market rally is in stark

contrast to a 5% sell-off in Taiwan, which faces 32%

levies and relies heavily on chip exports.

Asian emerging markets have been punished with among the

steepest of Trump's tariff rates, with no let-up in the stock

rout. Thailand's benchmark dropped to a five-year

trough, and Indonesia came back from a week-long break to a 9%

plunge in its stock market and a record low for the rupiah.

Key developments that could influence markets on Tuesday:

- ECB policy maker Olli Rehn speaks in Helsinki

- German Finance Minister Christian Lindner speaks in Berlin

- ECB board member Luis de Guindos speaks at Spanish Banking

Association gathering in Madrid

- Bank of England Deputy Governor Clare Lombardelli speaks

in London

- Riksbank Governor Erik Thedéen speaks about the economy in

Stockholm

- Norges Bank Governor Ida Wolden Bache gives a speech in

Oslo

- San Francisco Fed President Mary Daly speaks in Provo,

Utah

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