Latest news with #STOXX
Yahoo
2 days ago
- Business
- Yahoo
European Defense Boom & the Rise of Leveraged Single-Stock ETFs
(1:00) - What Should Investors Expect From The Rest of The Year? (4:10) - Select STOXX Europe Aerospace & Defense ETF: EUAD (7:15) - Should You Use Single Stock Leveraged ETFs In Your Portfolio? (15:30) - SPAC Market Resurgence: Will It Be Any Different This Time Around? (18:45) - What ETFs Should Investors Be On The Look Out For From Tuttle Capital Management? (21:40) - Episode Roundup: MSTU, MSTX, ROBN, SPCX, UFOD, GRFT Podcast@ In this episode of ETF Spotlight, I speak with Matthew Tuttle, CEO and CIO of Tuttle Capital Management, about some hot market areas, including European defense stocks and leveraged single-stock ETFs. European defense stocks, which have been climbing since the start of the Russia–Ukraine war, have soared in 2025 as many nations ramp up military spending, partly in response to pressure from Trump. While some of this spending will benefit U.S. defense contractors, European firms are likely to be major beneficiaries. The Select STOXX Europe Aerospace & Defense ETF EUAD has surged about 78% year to date. Can the rally continue? Single-stock ETFs have exploded in popularity among thrill-seeking investors. The category now has $23 billion in assets. These ETFs enable retail traders to obtain lower-cost leverage than through margin or options. However, investors should remember that these products are designed only for short-term trading by those who closely monitor their portfolios. Due to daily rebalancing, the fund's long-term returns can fall short of the underlying stock's leveraged performance, especially in volatile markets. Leveraged single-stock ETFs, particularly those linked to highly volatile stocks like MicroStrategy MSTR, are prone to huge swings. Many investors lost significant amounts in March this year on the T-Rex 2X Long MSTR Daily Target ETF MSTU and the Defiance Daily Target 2x Long MSTR ETF MSTX. While earlier products focused on popular stocks like NVIDIA NVDA and Tesla TSLA, newer products like the Tradr 2X Long QBTS Daily ETF QBTX are targeting the most volatile names. Some of Tuttle Capital's proposed ETFs have received a lot of media attention — particularly those themed around UFOs and 'grift.' These aim to capitalize on 'reverse-engineered alien technology' and 'government grift,' respectively. Tune in to the podcast to learn more. Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@ Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report Select STOXX Europe Aerospace & Defense ETF (EUAD): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
The Advertiser
2 days ago
- Business
- The Advertiser
Global shares gain before key US earnings and data
Shares have climbed worldwide and the dollar has held gains as market participants enter a key week for US earnings, inflation data and trade talks in a relatively optimistic mood. Oil prices edged lower after US President Donald Trump issued a 50-day deadline for Russia to end the war in Ukraine to avoid energy sanctions. Trump signalled he was open to discussions on tariffs after his weekend threat to impose 30 per cent duties on the European Union and Mexico from August 1. Japan is reportedly trying to schedule high-level talks with the US on Friday. Market reaction to the tariff uncertainty has been benign, making earnings in the United States this week all the more important for cues. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.8 per cent on Tuesday, while Europe's STOXX benchmark rose 0.2 per cent and Nasdaq futures gained after Nvidia said it would resume sales of its H20 chips to China. The EU accused the US of resisting efforts to strike a trade deal and warned of countermeasures if no agreement is reached. Trump said he was open to talks with the EU and other trading partners. Japan's Prime Minister Shigeru Ishiba is arranging to meet US Treasury Secretary Scott Bessent in Tokyo on Friday, the Yomiuri newspaper reported, before an August 1 deadline before 25 per cent tariffs are due to take effect. Ishiba also has an election to contend with on Sunday, with polls showing his ruling coalition might lose their majority in the upper house to political opponents who are advocating for expansive spending. Japanese government bonds plunged, with the benchmark 10-year yield rising to 1.595 per cent, its highest since October 2008. Data showed China's economy slowed less than expected in the second quarter in a show of resilience against US tariffs. Nvidia CEO Jensen Huang is scheduled to visit the country on Wednesday, with his company now planning to resume sales of its H20 artificial intelligence chips in the market. The US earnings season is set to begin on Tuesday, with second-quarter reports from major banks. S&P 500 profits are expected to rise 5.8 per cent year-over-year, according to LSEG data. The outlook has dimmed sharply since the early April forecast of 10.2 per cent growth, before Trump launched his trade war. Trump's renewed verbal attacks on Federal Reserve chair Jerome Powell in recent weeks also offered markets a reminder of the turmoil that his sometimes abrupt decision-making can unleash, analysts said. Investors are also waiting for US consumer price data for June, due on Tuesday, and will monitor for any upward pressure on prices from tariffs. The dollar was little changed at 147.62 yen after touching a three-week high. The euro edged up 0.1 per cent to $US1.1680 after four days of losses. US crude dipped 0.6 per cent to $US66.56 a barrel. Trump announced new weapons shipments for Ukraine on Monday, and threatened sanctions on buyers of Russian exports unless Moscow agrees to a peace deal in 50 days. Gold strengthened 0.5 per cent at $US3,358 per ounce, while spot silver gained 0.3 per cent to $US38.25 an ounce after hitting its highest level since September 2011 in the previous session. Shares have climbed worldwide and the dollar has held gains as market participants enter a key week for US earnings, inflation data and trade talks in a relatively optimistic mood. Oil prices edged lower after US President Donald Trump issued a 50-day deadline for Russia to end the war in Ukraine to avoid energy sanctions. Trump signalled he was open to discussions on tariffs after his weekend threat to impose 30 per cent duties on the European Union and Mexico from August 1. Japan is reportedly trying to schedule high-level talks with the US on Friday. Market reaction to the tariff uncertainty has been benign, making earnings in the United States this week all the more important for cues. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.8 per cent on Tuesday, while Europe's STOXX benchmark rose 0.2 per cent and Nasdaq futures gained after Nvidia said it would resume sales of its H20 chips to China. The EU accused the US of resisting efforts to strike a trade deal and warned of countermeasures if no agreement is reached. Trump said he was open to talks with the EU and other trading partners. Japan's Prime Minister Shigeru Ishiba is arranging to meet US Treasury Secretary Scott Bessent in Tokyo on Friday, the Yomiuri newspaper reported, before an August 1 deadline before 25 per cent tariffs are due to take effect. Ishiba also has an election to contend with on Sunday, with polls showing his ruling coalition might lose their majority in the upper house to political opponents who are advocating for expansive spending. Japanese government bonds plunged, with the benchmark 10-year yield rising to 1.595 per cent, its highest since October 2008. Data showed China's economy slowed less than expected in the second quarter in a show of resilience against US tariffs. Nvidia CEO Jensen Huang is scheduled to visit the country on Wednesday, with his company now planning to resume sales of its H20 artificial intelligence chips in the market. The US earnings season is set to begin on Tuesday, with second-quarter reports from major banks. S&P 500 profits are expected to rise 5.8 per cent year-over-year, according to LSEG data. The outlook has dimmed sharply since the early April forecast of 10.2 per cent growth, before Trump launched his trade war. Trump's renewed verbal attacks on Federal Reserve chair Jerome Powell in recent weeks also offered markets a reminder of the turmoil that his sometimes abrupt decision-making can unleash, analysts said. Investors are also waiting for US consumer price data for June, due on Tuesday, and will monitor for any upward pressure on prices from tariffs. The dollar was little changed at 147.62 yen after touching a three-week high. The euro edged up 0.1 per cent to $US1.1680 after four days of losses. US crude dipped 0.6 per cent to $US66.56 a barrel. Trump announced new weapons shipments for Ukraine on Monday, and threatened sanctions on buyers of Russian exports unless Moscow agrees to a peace deal in 50 days. Gold strengthened 0.5 per cent at $US3,358 per ounce, while spot silver gained 0.3 per cent to $US38.25 an ounce after hitting its highest level since September 2011 in the previous session. Shares have climbed worldwide and the dollar has held gains as market participants enter a key week for US earnings, inflation data and trade talks in a relatively optimistic mood. Oil prices edged lower after US President Donald Trump issued a 50-day deadline for Russia to end the war in Ukraine to avoid energy sanctions. Trump signalled he was open to discussions on tariffs after his weekend threat to impose 30 per cent duties on the European Union and Mexico from August 1. Japan is reportedly trying to schedule high-level talks with the US on Friday. Market reaction to the tariff uncertainty has been benign, making earnings in the United States this week all the more important for cues. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.8 per cent on Tuesday, while Europe's STOXX benchmark rose 0.2 per cent and Nasdaq futures gained after Nvidia said it would resume sales of its H20 chips to China. The EU accused the US of resisting efforts to strike a trade deal and warned of countermeasures if no agreement is reached. Trump said he was open to talks with the EU and other trading partners. Japan's Prime Minister Shigeru Ishiba is arranging to meet US Treasury Secretary Scott Bessent in Tokyo on Friday, the Yomiuri newspaper reported, before an August 1 deadline before 25 per cent tariffs are due to take effect. Ishiba also has an election to contend with on Sunday, with polls showing his ruling coalition might lose their majority in the upper house to political opponents who are advocating for expansive spending. Japanese government bonds plunged, with the benchmark 10-year yield rising to 1.595 per cent, its highest since October 2008. Data showed China's economy slowed less than expected in the second quarter in a show of resilience against US tariffs. Nvidia CEO Jensen Huang is scheduled to visit the country on Wednesday, with his company now planning to resume sales of its H20 artificial intelligence chips in the market. The US earnings season is set to begin on Tuesday, with second-quarter reports from major banks. S&P 500 profits are expected to rise 5.8 per cent year-over-year, according to LSEG data. The outlook has dimmed sharply since the early April forecast of 10.2 per cent growth, before Trump launched his trade war. Trump's renewed verbal attacks on Federal Reserve chair Jerome Powell in recent weeks also offered markets a reminder of the turmoil that his sometimes abrupt decision-making can unleash, analysts said. Investors are also waiting for US consumer price data for June, due on Tuesday, and will monitor for any upward pressure on prices from tariffs. The dollar was little changed at 147.62 yen after touching a three-week high. The euro edged up 0.1 per cent to $US1.1680 after four days of losses. US crude dipped 0.6 per cent to $US66.56 a barrel. Trump announced new weapons shipments for Ukraine on Monday, and threatened sanctions on buyers of Russian exports unless Moscow agrees to a peace deal in 50 days. Gold strengthened 0.5 per cent at $US3,358 per ounce, while spot silver gained 0.3 per cent to $US38.25 an ounce after hitting its highest level since September 2011 in the previous session. Shares have climbed worldwide and the dollar has held gains as market participants enter a key week for US earnings, inflation data and trade talks in a relatively optimistic mood. Oil prices edged lower after US President Donald Trump issued a 50-day deadline for Russia to end the war in Ukraine to avoid energy sanctions. Trump signalled he was open to discussions on tariffs after his weekend threat to impose 30 per cent duties on the European Union and Mexico from August 1. Japan is reportedly trying to schedule high-level talks with the US on Friday. Market reaction to the tariff uncertainty has been benign, making earnings in the United States this week all the more important for cues. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.8 per cent on Tuesday, while Europe's STOXX benchmark rose 0.2 per cent and Nasdaq futures gained after Nvidia said it would resume sales of its H20 chips to China. The EU accused the US of resisting efforts to strike a trade deal and warned of countermeasures if no agreement is reached. Trump said he was open to talks with the EU and other trading partners. Japan's Prime Minister Shigeru Ishiba is arranging to meet US Treasury Secretary Scott Bessent in Tokyo on Friday, the Yomiuri newspaper reported, before an August 1 deadline before 25 per cent tariffs are due to take effect. Ishiba also has an election to contend with on Sunday, with polls showing his ruling coalition might lose their majority in the upper house to political opponents who are advocating for expansive spending. Japanese government bonds plunged, with the benchmark 10-year yield rising to 1.595 per cent, its highest since October 2008. Data showed China's economy slowed less than expected in the second quarter in a show of resilience against US tariffs. Nvidia CEO Jensen Huang is scheduled to visit the country on Wednesday, with his company now planning to resume sales of its H20 artificial intelligence chips in the market. The US earnings season is set to begin on Tuesday, with second-quarter reports from major banks. S&P 500 profits are expected to rise 5.8 per cent year-over-year, according to LSEG data. The outlook has dimmed sharply since the early April forecast of 10.2 per cent growth, before Trump launched his trade war. Trump's renewed verbal attacks on Federal Reserve chair Jerome Powell in recent weeks also offered markets a reminder of the turmoil that his sometimes abrupt decision-making can unleash, analysts said. Investors are also waiting for US consumer price data for June, due on Tuesday, and will monitor for any upward pressure on prices from tariffs. The dollar was little changed at 147.62 yen after touching a three-week high. The euro edged up 0.1 per cent to $US1.1680 after four days of losses. US crude dipped 0.6 per cent to $US66.56 a barrel. Trump announced new weapons shipments for Ukraine on Monday, and threatened sanctions on buyers of Russian exports unless Moscow agrees to a peace deal in 50 days. Gold strengthened 0.5 per cent at $US3,358 per ounce, while spot silver gained 0.3 per cent to $US38.25 an ounce after hitting its highest level since September 2011 in the previous session.
Yahoo
3 days ago
- Business
- Yahoo
3 European Small Caps with Strong Potential
Amid the backdrop of trade tensions and economic fluctuations, European markets have shown resilience, with the pan-European STOXX Europe 600 Index ending 1.15% higher recently, buoyed by hopes for new trade deals. As investors navigate these complex dynamics, identifying small-cap stocks with strong potential requires a keen eye for companies that can capitalize on emerging opportunities and demonstrate robust fundamentals despite broader market uncertainties. Name Debt To Equity Revenue Growth Earnings Growth Health Rating AB Traction NA 5.39% 5.24% ★★★★★★ Martifer SGPS 102.88% -0.23% 7.16% ★★★★★★ La Forestière Equatoriale NA -65.30% 37.55% ★★★★★★ Dekpol 63.20% 11.06% 13.37% ★★★★★☆ va-Q-tec 43.54% 8.03% -34.33% ★★★★★☆ ABG Sundal Collier Holding 46.02% -6.02% -15.62% ★★★★☆☆ Darwin 3.03% 84.88% 5.63% ★★★★☆☆ Practic 5.21% 4.49% 7.23% ★★★★☆☆ Eurofins-Cerep 0.46% 6.80% 6.93% ★★★★☆☆ MCH Group 124.09% 12.40% 43.58% ★★★★☆☆ Click here to see the full list of 316 stocks from our European Undiscovered Gems With Strong Fundamentals screener. We're going to check out a few of the best picks from our screener tool. Simply Wall St Value Rating: ★★★★★★ Overview: Philogen S.p.A. is a biotechnology company focused on developing drugs for oncology and chronic inflammatory diseases, with a market capitalization of approximately €887.30 million. Operations: Philogen generates revenue primarily from its biotechnology segment, amounting to €77.65 million. The company's financials reflect a focus on this core area without additional segment diversification. Philogen, a small European biotech player, has recently become profitable and boasts a strong financial position with more cash than total debt. Over the past five years, its debt-to-equity ratio impressively dropped from 1.7 to 0.03, indicating prudent financial management. Despite this progress, earnings are projected to decrease by an average of 36.9% annually over the next three years. The company initiated share repurchases in May 2025 under a program allowing up to 902,195 shares or about 2.24% of its share capital to be bought back, aiming for strategic flexibility and liquidity support for Philogen stock amidst volatile market conditions. Click here to discover the nuances of Philogen with our detailed analytical health report. Evaluate Philogen's historical performance by accessing our past performance report. Simply Wall St Value Rating: ★★★★☆☆ Overview: Viohalco S.A. is a diversified industrial company that, through its subsidiaries, engages in the manufacturing and sale of aluminium, copper, cables, steel, and steel pipe products with a market capitalization of €1.69 billion. Operations: Viohalco generates revenue through the manufacturing and sale of aluminium, copper, cables, steel, and steel pipe products. The company's financial performance is influenced by its ability to manage production costs effectively. Viohalco, a dynamic player in the metals and mining sector, has shown impressive earnings growth of 336.9% over the past year, outpacing industry averages. Trading at 50.3% below its estimated fair value, it presents an intriguing valuation proposition. The company's debt to equity ratio has improved significantly from 139.5% to 93.5% over five years, though interest payments remain under pressure with EBIT covering them just 2.8 times—below the desired threshold of three times coverage. Recent financials highlight a robust net income jump to €40.29 million for Q1 2025 from €12.94 million previously, with sales reaching €930.93 million compared to €816.59 million last year. Click here and access our complete health analysis report to understand the dynamics of Viohalco. Explore historical data to track Viohalco's performance over time in our Past section. Simply Wall St Value Rating: ★★★★★★ Overview: Bonheur ASA operates in the renewable energy, wind service, and cruise sectors across various regions including the United Kingdom, Norway, Europe, Asia, the Americas, and Africa with a market capitalization of NOK10.23 billion. Operations: Bonheur ASA generates revenue primarily from its wind service segment at NOK5.38 billion and cruise operations at NOK3.65 billion, with additional contributions from renewable energy. The company's financial performance is influenced by these diverse revenue streams, where the wind service segment plays a significant role in driving overall income. Bonheur, a notable player in the renewable energy sector, has seen its debt to equity ratio improve from 180.5% to 90.7% over five years, reflecting prudent financial management. Its net debt to equity ratio stands at a satisfactory 20.9%, with interest payments comfortably covered by EBIT at 3.8 times coverage. Despite earnings growth of 16.3% last year outpacing industry averages, analysts foresee an annual revenue dip of 0.2% and shrinking profit margins over the next three years; however, Bonheur's shares are trading below market value with a P/E ratio of 8.5x against Norway's average of 12.7x, suggesting potential upside for investors considering future earnings growth prospects amidst current challenges like operational downtime and regulatory hurdles. Bonheur's Wind Service segment expansion could significantly boost revenue and renewable capacity. Click here to explore the full narrative on Bonheur's potential growth opportunities. Unlock more gems! Our European Undiscovered Gems With Strong Fundamentals screener has unearthed 313 more companies for you to here to unveil our expertly curated list of 316 European Undiscovered Gems With Strong Fundamentals. Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BIT:PHIL ENXTBR:VIO and OB:BONHR. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Al Etihad
07-07-2025
- Business
- Al Etihad
Stocks and dollar drift as US shifts tariff goal posts, oil skids
7 July 2025 13:15 LONDON, (REUTERS)Stocks edged downwards and the dollar drifted near multi-year lows on Monday, after United States officials flagged a delay on tariffs but failed to provide specifics on the changes, while oil prices slid as OPEC+ opened the supply spigots more than US is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday, with the higher rates to take effect on August in April announced a 10% base tariff rate on most countries and higher "reciprocal" rates ranging up to 50%, with an original deadline of this Wednesday. However, Trump also said levies could range in value from "maybe 60% or 70%".With very few actual trade deals done, analysts suspect the date will be pushed out, though it was still not clear if the new deadline applied to all trading partners or just have grown somewhat used to the uncertainty surrounding US trade policy and the initial market reaction was cautious. S&P 500 futures fell 0.44% and Nasdaq futures were down 0.6% in early European trading benchmark STOXX index was down just 0.02%, while MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.6%.The muted market reaction to the latest tariff twist showed that investors were becoming more attuned to the cycle of dramatic lurches in US trade policy under Trump, analysts bonds were better bid, with 10-year Treasury yields down almost 2 basis points at 4.3379%.Major currencies were mixed as the dollar index nudged up 0.4% to 97.292. The euro held at $1.1738, just short of last week's top of $1.1830, while the dollar was 0.3% firmer at 145.02 export-exposed Australian dollar was again used as a proxy for trade risk and fell 0.8% to $ commodity markets, gold slipped 0.7% to $3,311 an ounce , though it did gain almost 2% last week as the dollar prices slid anew after the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, agreed on Saturday to raise production by a larger-than-expected 548,000 barrels per day in August. Brent dropped 0.4% to $68.01 a barrel, while U.S. crude fell 1.1% to $65.28 per barrel.
CNBC
04-07-2025
- Business
- CNBC
Why European equity markets may be overlooking trade tariff risks
European stock markets have been on a tear in 2025, with the Stoxx Europe 600 index climbing roughly 7% in the year to date and investors rotating into the region to seek refuge from the political and valuation anxieties of the U.S. markets. But some analysts warn that this rally is built on a fragile and potentially risky assumption: that the escalating global trade war is temporary and will pass without inflicting lasting damage. Investment strategists highlight that beneath the surface of the market's optimism, the data tells a more grounded story. .STOXX YTD mountain They point to the Federal Reserve's forecast that the U.S. GDP will grow by 1.4% this year , down from the 1.7% previously forecast in March, before the announcement of U.S. President Donald Trump's new tariff regime. The growth slowdown in the U.S. — the central driver of the global economy — is expected to wash up on European shores soon. Yet, equity markets are running on hopes of central bank easing and a belief that political leaders will swerve at the last moment, appearing to ignore the risk of a significant economic downturn, according to Bank of America. "Markets are effectively pricing right now for global growth momentum to be completely unaffected by the tariffs," BofA's Head of European Equity Strategy Sebastian Raedler told CNBC on Thursday. "That's not the situation that we're in." Raedler also highlighted that companies were paying $190 billion more in tariffs on an annualized basis in May compared to late last year, equivalent to 7% of corporate profits in the first quarter. "Corporations have not passed [the tariffs] on to consumers," he added. Which means, as companies absorb the price increase, they will experience a significant profit margin squeeze. "If you look at margin expectations, they're at all-time highs. So the market has not yet taken this seriously." Bank of America's Raedler has long been bearish on European equities despite multiple years of gains. He says the Stoxx Europe 600 index will decline to 490 over the next 12 months, equivalent to a 11% downside from current levels. More neutral than outright bearish, JPMorgan strategists have also advised caution, suggesting the "eurozone likely consolidates for some time longer" as it digests ongoing trade negotiations. The Wall Street bank says the Stoxx Europe 600 will hit 540 — about where it is currently trading — in 12 months, after paring gains from a minor rally to 580 by the end of this year. Their analysis is centered around the economic drag created by tariffs. The U.S., a critical market for European exports, had not yet felt the impact of the duties, as companies were still working through the goods that had rushed into the country ahead of Trump's announcement. "There was a very strong frontloading of orders ahead of the tariffs, and companies might be still working through this older inventory, which was acquired at lower prices," said Mislav Matejka, JPMorgan's head of global and European equity strategy in a note to clients, adding that "as the frontloading effects wane, the tariff impact might start to be felt". Despite these clear headwinds, markets remain optimistic, fueled by two main narratives. The first is the belief that the tariffs are merely a negotiating tactic and will be rolled back. The second — and perhaps more powerful — driver is the prospect of central banks easing their monetary policy. Markets are "spurring discussions around renewed Fed easing," a notion that encourages investors to "look through" any short-term economic weakness, according to Bank of America. Barclays, in a July 2 note to clients, echoed this view, pointing to the "dovish" central bank narrative as a key factor that has pushed global equities higher. In addition, unlike the Wall Street banks, the U.K.-headquartered investment bank says the risk of further tariffs has already peaked. "Tariffs shock is expected to hit employment and capex in [second half], but de-escalation means worst-case recession scenario should be avoided," said Emmanuel Cau, Head of European Equity Strategy at Barclays. "Meanwhile, tax cuts should support US growth down the road, while the Fed is expected to ramp up rate cuts, although we find current market pricing potentially too dovish." Barclays' Cau is expecting the Stoxx Europe Index to rise by 5% to 570 by the end of the year. The reality of the tariff situation, however, could be more complex. Equity analysts at TD Cowen had previously cited German footwear multinational Adidas's management as confident in delivering their full-year results under a 10% tariff scenario. They now expect earnings guidance to be lowered following the U.S.-Vietnam deal , where tariffs have been set at 20%. "Our take is that the 20% tariff on Vietnam goods will remain on top of the duties already placed on footwear and apparel," said TD Cowen's John Kernan in a note to clients on July 3. "We expect the rest of [Southeast Asia] tariff rates to be at 20% or higher." The impact is unlikely to be limited to just one company. Vietnam exports a third of all North American footwear and 15% of American apparel, according to TD Cowen.
