MARKET WRAPS

European indexes were struggling for direction and oil plunged after the OPEC+ agreed to make a larger oil output hike for a second consecutive month in June.

On Sunday, Trump minimized concerns over further economic turmoil as he moved forward with trade negotiations and stepped up pressure on Congress to pass a tax-and-spending bill.

The White House aims to announce at least one deal with a country seeking to escape higher tariffs this week, according to a senior administration official.

Later this week the Bank of England is expected to cut rates and Asian markets will focus on China's April trade data for signs on how U.S. tariffs are hitting the world's second-largest economy.

Stocks to Watch:

UBS Global Wealth Management cut its forecast for 2025 earnings growth forecast for global tech companies to 12% from 16% due to a likely negative impact of tariffs and elevated macro uncertainty.

"We expect some margin headwinds from accelerating supply chain relocations as well as higher depreciation expenses from ongoing AI capex," it said.

U.S. Markets:

Futures were down.

Investors will be looking toward Powell's remarks on Wednesday, following a two-day meeting of the Fed's rate-setting committee.

Ears will be perked for clues about if and when cuts may occur later this year.

After a week of results from Big Tech companies, focus will shift this week to industry bellwethers such as Walt Disney and Warner Bros Discovery, Mattel Inc. and Hasbro Inc., and automaker Ford Motor Co.

Forex:

The dollar fell.

The Fed is expected to keep rates unchanged, although it could flag the prospect of rate cuts in the coming months if the economy weakens, Swissquote said.

The ISM report on services activity at 1400 GMT will give hints on how the economy is faring amid trade tariffs.

Asian currencies were higher versus the dollar amid hopes for China-U.S. trade talks after Trump signaled he was open to lowering U.S. tariffs on imports from China.

Bonds:

Treasurys and eurozone bonds were steady, helped by falling oil prices.

However, yields remain close to Friday's higher levels after stronger-than-expected U.S. jobs data damped rate-cut expectations.

Bond markets were likely to consolidate ahead of Wednesday's Fed decision, Commerzbank said.

Energy:

Brent crude could dip below $50 a barrel by the end of the year if OPEC+ continues to accelerate production hikes, DNB Markets said.

It estimated excess supply of around 1.3 million barrels a day in the second half and around 1.7 million barrels a day in 2026.

Metals:

Gold futures rose on a weaker dollar.

Economic data on Friday showed buoyant U.S. hiring, suggesting the economy was relatively robust despite trade pressures, ANZ said.

This might keep the Fed wary of cutting interest rates in the short term.

Early signs of a thawing in U.S.-China trade talks also triggered a rally in the dollar, further curbing appetite for gold from investors, it added.

EMEA HEADLINES

Audi Says Guidance Remains in Place, But Excludes Tariff Impact

Audi backed its full-year financial forecasts, but said the difficulty in gauging the impact of tariffs means the guidance doesn't include any potential hit from the duties.

The German company joins a growing list of automakers who in recent weeks have inserted similar caveats in their financial outlooks as they struggle to get a grip on U.S. President Trump's dynamic trade policy.

Erste Group to Buy Santander Assets in Poland for $7.91 Billion

Erste Group Bank plans to buy Poland-based assets from Banco Santander for about $7.91 billion in a deal aimed at broadening Erste Group's presence in Central and Eastern Europe, the Austrian bank said.

The Austrian bank said Monday that it has agreed to buy 49% of consumer bank Santander Bank Polska and a 50% stake in asset management firm Santander TFI.

Switzerland Nears Deflation as SNB Mulls Rate Cuts

Swiss consumer prices fell close to deflationary territory in April, teeing up the possibility that the country's central bank could turn to negative interest rates in the coming year.

Annual inflation was 0.0% last month, down from 0.3% in March, Switzerland's Federal Statistics Office said Monday, with increasing clothes, food and air-transport prices moderated by falling accommodation and domestic holiday prices.

GLOBAL NEWS

What Big Tech Earnings Taught Us-and Didn't-About Tariffs

Six of the Magnificent Seven have reported their financial results this earnings season, giving investors some much-needed insight into how the world's largest tech companies are being impacted by tariffs.

Tesla, Alphabet, Meta Platforms, Microsoft, Amazon.com and Apple have all reported earnings over the last two weeks, making Nvidia the only Mag Seven company left.

How Bad Is China's Economy? The Data Needed to Answer Is Vanishing

Not long ago, anyone could comb through a wide range of official data from China. Then it started to disappear.

Land sales measures, foreign investment data and unemployment indicators have gone dark in recent years. Data on cremations and a business confidence index have been cut off. Even official soy sauce production reports are gone.

Trump Calls for 100% Tariff on Movies Made Overseas

President Trump has found the next industry he wants to bring back to the U.S. with tariffs: Hollywood.

Trump authorized a 100% tariff on films produced overseas, he said in a Truth Social post Sunday. He called it a response to tax incentives that have lured a substantial number of Hollywood productions outside the U.S.

Ukrainian Naval Drones Shoot Down Russian Jets in Military First, Kyiv Says

KYIV-Ukraine said it downed two Russian jet fighters using sea drones equipped with modified U.S.-made missiles, in what military officials in Kyiv said is the first such attack in the history of warfare.

Magura-7 sea drones deployed by Ukraine's military-intelligence agency, known as HUR, fired the missiles at two Su-30 jets that were flying near the Russian Black Sea port of Novorossiysk, HUR said.

Write to nina.kienle@wsj.com

Write to us at newsletters@dowjones.com

We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https://newsplus.wsj.com/subscriptions.

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

May 05, 2025 05:03 ET (09:03 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.