Global Markets Steady Amid Easing Trade Tensions and Anticipation of Nvidia Earnings

28 May 2025

Global financial markets exhibited stability on Wednesday, buoyed by signs of easing trade tensions between the United States and Europe, while investors turned their focus to the impending earnings report from semiconductor giant Nvidia.

In Europe, major indices posted modest gains. The STOXX 600 edged up by 0.1%, continuing its upward trajectory over the past two days. Britain's FTSE and France's CAC 40 both increased by 0.2%, while Germany's DAX rose by 0.3%, reaching a new record high, bolstered by strong performances in the defense sector .

Asian markets presented a mixed picture. Japan's Nikkei index closed flat after three consecutive days of gains. China's CSI300 blue-chip index dipped by 0.1%, and Hong Kong's Hang Seng Index declined by 0.6% .

Investor sentiment was positively influenced by U.S. President Donald Trump's recent decision to delay the imposition of 50% tariffs on European Union goods, signaling a potential thaw in trade relations. Trump described the EU's move to initiate talks as "positive," fostering optimism about a forthcoming agreement .

However, concerns lingered in the bond markets. A lackluster auction of Japan's 40-year government bonds highlighted ongoing apprehensions about fiscal deficits, leading to a rise in long-term yields .

The U.S. dollar maintained its strength, supported by robust economic data and the prevailing cautious sentiment in the markets.

All eyes are now on Nvidia, as the company is set to release its earnings report later today. Analysts anticipate a significant increase in revenue, which could have substantial implications for the technology sector and broader market trends.

As markets navigate through these developments, investors remain vigilant, balancing optimism over trade negotiations with caution regarding fiscal policies and corporate earnings.