50% tariff on the European Union, extending the deadline to July 9. In a post on Truth Social, Trump said he made the decision following a call with European Commission President Ursula von der Leyen. Von der Leyen confirmed the conversation, describing it as a "good call" and noting that more time is needed to "reach a good deal." The move comes after a turbulent week for markets, with mounting concerns over the US fiscal outlook and trade tensions weighing heavily on investor sentiment. The Dow dropped 2.47%, the S&P 500 fell 2.61%, and the Nasdaq Composite declined 2.47% last week. Apple shares also took a sharp hit, plunging 7.57% last week as Trump warned that iPhones sold in the US must be manufactured domestically or face a minimum 25% tariff. US markets are closed on Monday for the Memorial Day holiday.
Frankfurt's DAX rose more than 1% on Monday, reversing losses from Friday and outperforming its regional peers. Investor sentiment received a boost following President Trump's decision to delay the implementation of 50% tariffs on European Union goods until July 9. The announcement was made after a Sunday phone call with European Commission President Ursula von der Leyen, who requested additional time to finalize a trade agreement. Leading the gains were Siemens, MTU Aero Engines, Rheinmetall, Infineon Technologies, Airbus, and Sartorius, each rising by more than 2 percent. German automakers also performed strongly, with Mercedes-Benz gaining 1.8%, Volkswagen adding 1.7% and BMW up 1.5%. In corporate news, a weekend report indicated that Thyssenkrupp will convene a shareholders meeting on August 8 to seek approval for the planned spin-off of its warship division scheduled for later this year.
The Nikkei 225 Index jumped 1% to close at 37,531 while the broader Topix Index added 0.6% to 2,752 on Monday, extending gains from the previous session as market sentiment was buoyed by US President Donald Trump’s decision to delay the implementation of 50% tariffs on the EU. A retreat in the safe-haven yen also supported Japanese shares by easing currency-related pressure on exporters. Meanwhile, investors continued to assess the Bank of Japan’s policy trajectory, with firm expectations that the central bank will raise interest rates further to counter persistent inflation. Industrial and technology shares led the rally, with strong performances from Kawasaki Heavy (up 3.6%), Disco (2.5%), Advantest (4.2%), and Tokyo Electron (2.6%). Nippon Steel also advanced 2.1% after Trump appeared to give his approval to the company’s long-delayed takeover of US Steel.
