Global markets opened on a cautious note today as Asian stocks dipped in response to concerning data from China and reports of impending tariff hikes by US President Joe Biden on certain Chinese goods.
Equity benchmarks in Australia and Japan saw declines, mirroring the downward trend in Hong Kong futures.
The US contracts showed a slight dip following the previous week's struggle of the S&P 500 index to gain momentum.
This tepid market sentiment came amidst news of a dip in consumer sentiment to a six-month low and a rise in short-term inflation expectations.
Sources familiar with the matter revealed that President Biden plans to significantly increase tariffs on certain Chinese goods.
The proposed tariffs include an increase from 27.5% to 102.5% on electric vehicles from China.
This development, coupled with recent data showing a prolonged decline in Chinese industrial prices and a contraction in credit for the first time in April, has raised concerns among investors.
Economists, however, remain cautiously optimistic.
Meanwhile, global investors are closely monitoring statements from US officials for indications of the Federal Reserve's stance on interest rates.
Looking ahead, market participants are awaiting the US April inflation data scheduled for release on Wednesday, which is expected to have a significant impact on trading sentiment.
In addition to market dynamics, geopolitical tensions are also in focus.
President Vladimir Putin's surprise replacement of his defense minister amid the ongoing conflict in Ukraine adds to the uncertainty.
The US expressed heightened concerns over Israel's conduct during its Gaza offensive, warning of potential consequences.
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