Markets Rally Amid Tariff Pause and Global Shifts

Global markets shook off Memorial Day lows after President Donald Trump delayed his planned 50 percent tariffs on European Union imports, sending U.S. futures sharply higher on Monday night and buoying European equities the following session. The STOXX 600 index rose nearly one percent, driven by a 1.7 percent rebound in auto stocks that had tumbled amid fears of crippling levies on German carmakers. Yet economists caution that any future duty reductions would almost certainly prompt EU countermeasures, underscoring that trade tensions remain a destabilizing force for investor sentiment.

In Asia, benchmark indices were mixed on Tuesday after U.S. markets closed for the holiday. Hong Kong’s Hang Seng edged down 0.05 percent by mid-afternoon, while shares of China-based bubble tea chains leapt on local trading platforms. Mixue surged eight percent, Guming climbed 6.3 percent and Nayuki gained 5.5 percent, as investors bet that discretionary spending on branded beverages will hold up despite broader economic headwinds.

China’s industrial sector offered its own ray of hope, reporting a 3 percent rise in April profits—an acceleration from March’s 2.6 percent gain. The uptick marked a consecutive month of improvement for major manufacturers, fueled by Beijing’s targeted support measures for private enterprises that have helped offset the dampening effects of U.S. tariffs on Chinese exports. Still, analysts warn that sustained recovery will depend on robust domestic demand and continued policy backing.

Meanwhile, in Hanoi, French President Emmanuel Macron used his first state visit to Vietnam in nearly a decade to finalize a landmark agreement for Hanoi to purchase twenty Airbus A330neo wide-body jets. The pact, signed alongside deals for Sanofi vaccines and civil-nuclear cooperation, demonstrates Europe’s strategy of deepening ties with fast-growing Asian markets even as transatlantic trade skirmishes threaten to disrupt global supply chains.

Back in Europe, Sweden’s Volvo Cars announced plans to eliminate approximately 3,000 mostly office-based jobs as part of an 18 billion kronor cost-cutting program. The Chinese-owned automaker has already withdrawn a China-made model from U.S. showrooms and suspended financial guidance for 2025 and 2026, citing tariff pressures that have squeezed profitability across the industry. Volvo’s workforce reduction underscores the broader challenge facing global manufacturers forced to navigate a patchwork of protectionist measures.

Against this backdrop of policy pivots and corporate belt-tightening, Warren Buffett’s annual Berkshire Hathaway meeting offered a dose of value-investing wisdom. CNBC Pro’s Yun Li highlighted lesser-known takeaways from the Oracle of Omaha, including his continued interest in select U.S. real estate markets and his recent increase in stakes in Japanese trading houses—reminders that diversification and long-term horizons remain at the core of Buffett’s approach, even amid macroeconomic uncertainty.

Finally, in Singapore, demand for secure storage of precious metals is surging. “The Reserve,” a high-security vault near Changi Airport, has seen orders to store gold and silver rise 88 percent year-to-date compared to the same period in 2024. Founder Gregor Gregersen attributes the trend to global investors’ desire to hold physical assets in stable jurisdictions, with 90 percent of new requests coming from overseas clients seeking a trusted haven for bullion.

Together, these developments—from tariff delays and industrial earnings to jetliner sales, factory layoffs, Buffett’s market insights and a bullion storage boom—paint a picture of an interconnected global economy in flux. Investors and policymakers alike must navigate shifting trade policies, corporate cost pressures and enduring demand for tangible assets as they chart a course through an increasingly complex financial landscape.

Sources: AirGuide Business airguide.info, bing.com, cnbc.com