London — European and U.S. equity futures advanced Tuesday as market sentiment improved following signals from former U.S. President Donald Trump that he has no intention of removing Federal Reserve Chair Jerome Powell, despite prior criticism of the central bank’s interest rate policies.
The reassuring remarks helped ease investor concerns over potential political interference in U.S. monetary policy. Concurrently, the U.S. dollar and Treasury yields also rose, indicating renewed investor confidence.
Adding to the upbeat tone, Trump signaled a softer approach toward China, pledging to be “very nice” and hinting at substantial tariff reductions should a trade agreement be achieved. The statement marked a shift in tone that analysts say could support global trade dynamics.
ECB Criticism and Transatlantic Trade Tensions
However, not all voices were supportive of Trump’s trade approach. European Central Bank policymaker François Villeroy de Galhau criticized the former U.S. president’s tariff strategy, labeling it a “lose-lose game” based on flawed economic reasoning. He called for a renewed commitment to transatlantic cooperation and warned of the damage trade wars inflict on global economies.
“It’s more crucial than ever to speak truthfully about the consequences of protectionism,” Villeroy said, emphasizing the importance of reopening constructive dialogue between global economic powers.
Zelenskiy Seeks Vatican Meeting Amid Ukraine Uncertainty
Meanwhile, geopolitical concerns remain elevated as Ukrainian President Volodymyr Zelenskiy proposed a meeting with Trump at the Vatican this weekend, where leaders will gather for the funeral of Pope Francis. The invitation comes days after Trump suggested he might abandon diplomatic efforts in Ukraine if a resolution isn’t reached soon.
Zelenskiy expressed readiness to discuss terms of an “unconditional or partial ceasefire” with Russia, signaling a potential shift in the negotiation stance amid rising international pressure to end the conflict.
Tesla Rebounds Despite Weak Earnings
In corporate news, Tesla shares surged 4.6% in after-hours trading following comments from CEO Elon Musk, who promised to refocus on the electric vehicle business and reduce involvement in other ventures, including his controversial work on Dogecoin and other cost-cutting initiatives. Despite falling short on profit and revenue forecasts, the company’s renewed strategic focus reassured investors.
Notably, Tesla backed away from its earlier projection of sales growth for the year, citing market volatility and supply chain constraints.
Gold Investment Returns to the Spotlight
Gold markets are witnessing renewed interest from European and North American investors, who have re-entered bullion-backed exchange-traded products (ETPs) after a three-year hiatus. By mid-April, investors had added 240 tons to gold ETFs, a stark reversal from the 441 tons sold in recent years, according to the World Gold Council.
“This shift from net sellers to net buyers is a major change,” noted Aakash Doshi of State Street Global Advisors, who predicts gold prices could climb as high as $5,000 in the long term as macroeconomic uncertainties persist.
UK’s Reeves to Press U.S. for Trade Deal
UK Chancellor of the Exchequer Rachel Reeves will travel to Washington this week to personally appeal to U.S. Treasury Secretary Scott Bessent for a trade deal that defends British economic interests. Reeves aims to secure preferential tariff arrangements amid growing momentum for formal trade negotiations between the two nations.
According to a report by The Wall Street Journal, the U.S. is drafting terms for upcoming trade talks with the UK, signaling a potential breakthrough in transatlantic commerce.
