Global stock markets diverge amid trade hopes, ahead of earnings

Analysts said that market sentiment has calmed since Trump dialled down pressure on Federal Reserve boss Jerome Powell and hinted at progress in trade talks with economic partners

- 

Global stocks markets diverged on Monday as investors welcomed the absence of further trade war escalation over the weekend and as countries seek to temper US President Donald Trump's tariffs.

While that was enough to help most Asian and European equities markets rise, investors on Wall Street took some money off the table ahead of upcoming corporate earnings reports and key economic data.

"A weekend light on drama was just what the doctor ordered for financial markets," said AJ Bell investment director Russ Mould.

Analysts said that market sentiment has calmed since Trump dialled down pressure on Federal Reserve boss Jerome Powell and hinted at progress in trade talks with economic partners.

"While last week's market action and today's early session suggest calmer waters, any sense of security is precarious," said City Index and FOREX.com analyst Fawad Razaqzada.

"Underneath the surface, key risks persist - trade tensions, recession worries, and monetary policy uncertainties are very much alive." Investors will have plenty of corporate earnings and economic data to command their attention.

"This week will be the first for a while where data and earnings will compete with tariff headlines," said Jim Reid, global head of macro research at Deutsche Bank.