Good morning. Here's what happened overnight and what you need to know today.
1.
Tariff rally: Wall Street kicked off the week with a rally after Donald Trump delayed 50% tariffs on the EU until 9 July, following a call with European Commission President Ursula von der Leyen. The S&P 500 rose 2.05%, the Nasdaq gained 2.47%, and the Dow climbed 1.78%, also boosted by a sharp rebound in US consumer confidence. Nvidia booked gains ahead of its earnings report tomorrow, while shares in Temu-owner PDD Holdings plunged after reporting a 47% fall in first-quarter profit. Treasuries rallied, with the yield on the 30-year note dropping below 5%. Gold futures fell roughly 2%. Meanwhile, the US government is poised to receive a so-called “golden share” in US Steel as part of Nippon Steel’s proposed acquisition, Nikkei reported. (WSJ)(Reuters)(Bloomberg)
2.
German realignment: Germany is considering curbs on military exports to Israel as its government signals a shift away from supporting the country’s offensive in Gaza. While Germany is one of Israel’s biggest weapons suppliers, Chancellor Friedrich Merz said on Tuesday the extent of the country’s backing would be revisited in internal government talks, as “We are appalled by the terrible suffering of the civilian population…The massive military strikes by the Israeli army in the Gaza Strip no longer make any sense to me as to how they serve the goal of fighting terrorism and freeing the hostages.” European Commission President Ursula von der Leyen also called Israel’s operations targeting civilian infrastructure “abhorrent” on Tuesday. Noting that Germany should refrain from lecturing Israel publicly given its historical responsibility, Merz said that if “international humanitarian law is now really being violated — then Germany…must also say something about it.” (Bloomberg)(Reuters)
