Global Markets Mixed as Trump’s Deadline Looms for Increased Tariffs on China

Published Time: 08-11-2025, 08:30

World stock markets showed mixed results on Monday, as investors braced for the expiration of a U.S.-China tariff truce set for Tuesday. The looming deadline comes amid ongoing trade tensions between the two economic giants and coincides with a planned U.S.-Russia summit that could impact geopolitical risk sentiment. Oil prices continued their decline, influenced by increased supply expectations and hopes for progress in the Ukraine conflict.

Market Movements: Europe, Asia, and U.S. Futures

In early European trading, Germany’s DAX index slipped 0.1% to 24,127.50, while France’s CAC 40 fell 0.2% to 7,728.58. The UK’s FTSE 100 gained 0.2%, reaching 9,114.27. Futures for major U.S. indexes showed slight gains: the S&P 500 was up 0.1%, and the Dow Jones Industrial Average increased by 0.2%.

Asian markets mostly advanced, with Hong Kong’s Hang Seng rising 0.2% to 24,906.81 and Shanghai’s Composite index adding 0.3% to 3,647.55. Taiwan’s Taiex climbed 0.5%, helped by a 0.4% rise in TSMC shares—the world’s largest contract chip manufacturer—seen as a barometer for the global semiconductor industry.

Trade Truce and Semiconductor Sector Developments

The current tariff truce between the U.S. and China, established in May, paused planned tariff increases for 90 days to allow ongoing negotiations. Tuesday marks the deadline for either extending or ending that truce. However, the last round of talks in Stockholm ended without a clear decision from U.S. President Donald Trump on whether the pause would continue.

Unconfirmed reports suggest major U.S. chipmakers, including Nvidia and Advanced Micro Devices (AMD), may agree to remit 15% of their sales revenue from AI-related chip exports to China to the U.S. government. Recently, the Trump administration eased some restrictions on chip sales to China. Despite this, Nvidia’s shares declined 0.6%, and AMD’s fell 1.7% in pre-market trading Monday.

Corporate Earnings Support Market Gains Despite Trade Concerns

Last Friday, the S&P 500 rose 0.8%, the Dow gained 0.5%, and the Nasdaq Composite added 1%, marking a record high set the previous day. Tech giants led the rally, with Nvidia climbing 1.1% and Apple surging 4.2%.

Strong quarterly earnings also fueled investor optimism. Gilead Sciences jumped 8.3% after exceeding analysts’ forecasts and raising its annual earnings outlook. Expedia Group rose 4.1% following its positive results. These companies were among the last major components of the S&P 500 to report second-quarter earnings, which mostly showed resilience despite tariff uncertainties.

However, the entertainment sector saw setbacks after the completion of an $8 billion merger between Skydance and Paramount. Paramount Skydance shares plunged 10.5%, while competitor Warner Bros. Discovery dropped 8%.

Upcoming U.S. Economic Data and Policy Implications

Investors are closely monitoring upcoming U.S. data on inflation and retail sales, which will provide critical insight into economic momentum and Federal Reserve policy direction. The trade war’s impact on the economy and inflation remains a central concern.

While lower interest rates can stimulate growth and investment, they risk fueling inflation. The balance between these forces will influence Federal Reserve decisions amid concerns over potential labor market weakening.

Oil Prices Extend Declines Amid Supply and Geopolitical Factors

Crude oil prices continued their downward trend on Monday. U.S. benchmark crude fell 16 cents to $63.72 per barrel, while Brent crude declined 9 cents to $66.50 per barrel. The price drop reflects increased output from OPEC+ countries and optimism about a possible diplomatic breakthrough in the Ukraine conflict, linked to the upcoming meeting between President Trump and Russian President Vladimir Putin.

Currency Movements Reflect Risk Sentiment

In currency markets, the U.S. dollar strengthened slightly against the Japanese yen, moving from 147.62 to 147.69 yen. Conversely, the euro weakened marginally, trading at $1.1641 compared to $1.1650.