Frank Walbaum

European equity markets were seeing some volatility. The German market retreated to a certain extent after hitting a new high and as investors reacted to a higher-than-expected increase in unemployment.

At the same time, investors could remain attentive to any developments in trade dynamics with the United States after President Trump postponed the imposition of 50% tariffs on European imports. The latter eased immediate trade tensions but uncertainty remained elevated.

Investors could also remain cautious ahead of Nvidia’s quarterly earnings report, due after the US close. While the chipmaker is expected to post a 66% revenue surge, concerns linger over how US technology restrictions on China might impact forward guidance. Volatility in the semiconductor sector could spill over into European tech names.

On the data front, Germany’s import prices fell 0.4% year-on-year in April, well below expectations, signaling a broader pattern of disinflationary pressures across the Eurozone. If sustained, this trend could influence the European Central Bank’s forward guidance and strengthen the case for a more dovish stance, which could support European equities.

Looking ahead, traders will monitor the release of FOMC minutes later today for further global macro signals.

Walbaum is Market Analyst at Naga