President Trump and geopolitics are setting the agenda for markets at the start of the week.
Investors are braced for more last-minute wrangling between the U.S. and its trading partners, with a 25% levy on Canadian and Mexican goods slated to start Tuesday. Commerce Secretary Howard Lutnick said Sunday that President Trump hasn’t decided yet whether to go ahead.
U.S. stock indexes were mixed in morning trading. Meanwhile, bitcoin held above $90,000, after surging Sunday when Trump said he would proceed with a strategic cryptocurrency reserve.
In Europe, defense stocks surged after the region’s leaders talked up military spending. Trump’s rancorous meeting with Ukrainian President Volodymyr Zelensky on Friday left Europe’s governments scrambling to put together their own Ukraine-Russia peace plan.
U.S. stock indexes were mixed, with the Dow edging higher and the tech-heavy Nasdaq Composite falling in morning trading. All three major indexes all gained at least 1.4% Friday, ending a tough month on a strong note.
Benchmark Treasury yields ticked up to around 4.25%. February saw the largest one-month yield decline since December 2023.
The U.S. dollar weakened against the euro and the U.K. pound.
Bitcoin traded above $90,000 after Trump’s comments Sunday reignited crypto prices. Crypto-sensitive stocks such as Coinbase and MicroStrategy rose premarket Monday.
European stocks outperformed, helped by defense names including BAE Systems and Thales, both of which were up more than 10%.
European natural-gas futures climbed, as prospects for an imminent Ukraine peace deal receded, making an increase of Russian supplies onto the global market look less likely.
Trump is due to address Congress on Tuesday, amid concerns about the economic impact of his policies.
Tuesday is set to be a big day for retail earnings, with Target and Best Buy among those due to report. Macy’s and Kroger are up Thursday, along with semiconductor company Broadcom.
The official jobs report for February is due Friday.
