Global markets showed mixed performance on Tuesday, May 27, 2025, as U.S. futures rose following the Memorial Day holiday. Investors await U.S. consumer confidence and house price data due later in the day.
The S&P 500 climbed 1.2%, and the Dow Jones Industrial Average gained 1.1% after President Donald Trump said he would delay plans to impose 50% tariffs on European Union goods until July 9.
European Markets Modestly Higher
In London, the FTSE 100 rose 0.8% to 8,786.34, recovering from Monday’s British holiday. Germany’s DAX edged up 0.1% to 24,039.21, while France’s CAC 40 dipped 0.1% to 7,818.02.
Asia Sees Divergent Moves
Asian markets were mixed. Japan’s Nikkei 225 reversed early losses and rose 0.5% to 37,724.11. The Bank of Japan signaled that it expects to raise interest rates in coming months as inflation pressures build. Governor Kazuo Ueda pointed to food price rises—rice prices have doubled over the past year—and noted that Japan’s inflation now exceeds that of the U.S. and Europe and stands above the central bank’s 2% target. He also warned that global economic uncertainty complicates any rate increase from the current 0.5% benchmark.
Hong Kong’s Hang Seng added 0.4% to close at 23,371.40, while Shanghai Composite fell 0.2% to 3,340.69. South Korea’s Kospi slipped 0.3% to 2,637.22.
Mixed Results in Other Asia-Pacific Markets
Australia’s S&P/ASX 200 rose 0.6% to 8,407.60. Taiwan’s Weighted Index fell 0.9%, and India’s Sensex declined 0.3%.
Oil and Currency Movements
In early trading, U.S. crude oil held steady at $61.53 per barrel. Brent crude inched up 6 cents to $64.18. The U.S. dollar strengthened against the yen, rising to ¥143.48 from ¥142.85. The euro weakened to $1.1369 from $1.1388.
Market Sentiment on Tariff Delay
Stephen Innes of SPI Asset Management noted that the market reaction to Trump’s tariff delay was muted. “Investors are well aware of this behavior,” he said. “Volatility remains, but like a horror movie getting a fifth sequel, the sudden shocks are losing their appeal.”
The EU’s chief trade negotiator said he had a “good call” with U.S. officials and that the EU remains “fully committed” to a trade deal by the July 9 deadline. Last week, Trump had warned on social media that talks were “going nowhere” and threatened 50% tariffs from June 1.
Recall of Last Week’s Losses
U.S. stocks ended last Friday lower as investors wondered if Trump’s threats were mere negotiating tactics. The S&P 500 fell 0.7%, marking its worst week in seven. The Dow fell 0.6%, and the Nasdaq Composite dropped 1%.
