European markets are set to open on a strong note Monday as investors assess the latest trade tariff developments and Europe's diplomatic efforts in Ukraine.
U.S. Commerce Secretary Howard Lutnick confirmed that tariffs on Mexico and Canada will take effect as scheduled on Tuesday, with President Donald Trump expected to finalize their exact levels before implementation. Additionally, a 10 percent tariff on Chinese imports remains under consideration, prompting China to pledge countermeasures.
Legendary investor Warren Buffet weighed in on the escalating trade tensions, describing them as "an act of war, to some degree" in a CBS interview over the weekend. Meanwhile, the euro rebounded from a 2.5-week low against the U.S. dollar, and the British pound gained momentum following a European summit on defense and Ukraine.
After a failed peace deal between Trump and Ukrainian President Volodymyr Zelenskyy, the European Union reiterated its commitment to working with European partners and allies to secure a lasting peace in Ukraine.
Asian markets traded broadly higher, buoyed by improved manufacturing data from China. The official factory survey showed China's manufacturing activity expanded at the fastest rate in three months, with the Caixin Manufacturing PMI rising to 50.8 in February from 50.1 in January.
The U.S. Labour Department's monthly jobs report is expected to dominate market sentiment this week, alongside reports on manufacturing and services activity, private sector employment, and jobless claims.
In currency markets, China's yuan hovered near a two-week low ahead of the National People's Congress meeting on March 5. Meanwhile, gold prices inched higher as the dollar weakened amid concerns that Trump's tariff policies could trigger a global trade war and fuel inflation.
Oil prices also rose as doubts mounted over a U.S.-brokered peace deal between Russia and Ukraine.
On Wall Street, U.S. stocks rallied on Friday as signs of cooling inflation outweighed uncertainty around AI investments and geopolitical tensions. The S&P 500 and Nasdaq Composite both surged 1.6 percent, while the Dow Jones Industrial Average gained 1.4 percent.
European equities closed mostly higher on Friday, despite skepticism surrounding Trump's tariff threats. The pan-European STOXX 600 ended marginally positive, Germany's DAX finished slightly higher, France's CAC 40 edged up 0.1 percent, and the U.K.'s FTSE 100 climbed 0.6 percent.
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