Published by Global Banking & Finance Review®
Posted on April 25, 2025
3 min readLast updated: January 24, 2026
Add as preferred source on GoogleUS-China trade tensions persist, but markets focus on strong corporate earnings. European stocks rise, and China may suspend some tariffs.
A look at the day ahead in European and global markets from Rocky Swift
As U.S. President Donald Trump's trade war with China devolves into a "he said, Xi said" back-and-forth over whether the countries are actually talking, the markets for now are shifting their attention to some upbeat corporate results.
Futures trade pointed to a higher open on European stock markets, adding to a second straight weekly gain as the shock wears off from Trump's April 2 "Liberation Day" tariff announcement. The whiplash effects are likely far from over but markets seem to be accepting them as the new normal.
Google parent Alphabet and packaged snacks maker Nestle beat sales estimates while pharmaceuticals heavyweight Merck posted higher profits.
Shares in Asia latched onto the positive news, with Japan's Nikkei rising more than 2% and MSCI's broad index of ex-Japan shares climbing more than 1%.
The U.S. dollar, which is trading more like a risk asset in the new upside-down world, rose sharply against the Swiss franc and euro in Asia trading. U.S. stock futures are signalling a continued rally.
With the bulk of Trump's sweeping tariffs suspended for 90 days, expectations have mounted that major trading partners will cut trade deals one-by-one with the U.S., but none have yet emerged. Negotiations between Japan and the U.S. have yet to produce anything concrete.
Trump said on Thursday that trade talks are happening with China, which a Chinese Foreign Ministry spokesperson later rejected as "false news".
China's government, however, is considering suspending its 125% tariff on some U.S. imports, Bloomberg News reported on Thursday. Chinese authorities may remove the additional levies for medical equipment and some industrial chemicals including ethane, the report said, citing people familiar with the matter.
On the earnings front, forecasts have been cut or withdrawn by a growing number of companies, including Japanese industrial robot maker Fanuc, Procter & Gamble, PepsiCo, Chipotle Mexican Grill, and American Airlines, signalling possible trouble ahead.
Meanwhile, the Russia-Ukraine war rages on with at least 12 killed in Kyiv in a missile and drone attack that prompted Trump to post "Vladimir, STOP!" on social media.
The earnings and economic data calendars are relatively light today, following a raft of mostly pessimistic sentiment readings for euro zone countries this week.
France reports on the business climate for April and Britain on retail sales for March, while Swedish defence firm SAAB reports first-quarter results.
Key developments that could influence markets on Friday:
-- Canada retail sales for February
-- US earnings: AbbVie, Phillips 66, Schlumberger
-- University of Michigan final survey for April
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(By Rocky Swift; Editing by Edmund Klamann)
The article discusses US-China trade tensions and their impact on global markets and corporate earnings.
Markets are focusing on positive corporate earnings despite the ongoing US-China trade tensions.
China is considering suspending its 125% tariff on some US imports, including medical equipment and industrial chemicals.
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