Futures buoyant, dollar drifts as markets sail toward tariff storm

Financial markets made a mixed start on Monday with US stock futures rising but the dollar wavering ahead of a week driven by data, Chinese earnings and the threat of steep US tariff hikes on the horizon.

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S&P 500 futures were up about 0.68 in the Asia morning and Nasdaq 1OO futures rose 0.88. Japan's Nikkei and Hong Kong's Hang Seng climbed about 0.28 The euro, which fell slightly last week, was up about 0.98 at $1,0835 in early trade. In emerging markets, Turkey's lira was on a knife’s edge as the jailing of President Tayyip Erdogan's main rival unsettles investors.

Shares in Australia-listed fibre-cement maker James Hardie fell I28 after it said it would buy US outdoor building products maker AZEK Company for $8.8 billion in cash and stock.

The week holds global purchasing managers index gauges, the US Federal Reserve's preferred inflation reading, inflation data in Australia and Japan, a budget update in Britain and major earnings in China.

But it is likely to be updates on US President Donald Trump's plans to for global reciprocal tariffs from April 2 that drives markets, and after a volatile month for stocks, bonds and currencies, analysts said there is no obvious trade ahead.

"It's very difficult to really devise a structural playbook,” said Chris Weston, head of research at Pepperstone.

“You've got to put your mind into the head of the consumer and households,” he said, since it has been fears of a slowdown in the world’s biggest economy that has led to weeks of selling dollars and stocks and a strong rally for Treasuries.