Appeals court reinstates Trump`s tariffs

pending. In a high-profile meeting, President Donald Trump criticised Federal Reserve Chair Jerome Powell for not cutting interest rates, asserting this places the US at an economic disadvantage compared to other countries. The Federal Reserve reaffirmed its commitment to data driven, independent monetary policy decisions despite these tensions. Given the current volatility and policy uncertainty, investors must maintain strict discipline. They should either commit to a long-term strategy or actively manage their positions as any hesitation risks exposure to sudden market reversals.

Latest market and economic update

Asian equities declined on Friday amid renewed concerns over US trade tariffs and stalled trade talks with Washington, with Chinese shares leading the losses as investor optimism faded. Japanese equities also fell following stronger-than-expected inflation data, which increased expectations of a possible interest rate hike, while other regional markets struggled amid broader uncertainty.

US equity futures edged lower overnight as investors awaited the latest PCE price index report amid ongoing trade-related uncertainty. In after-hours trading, Gap Inc. fell 15% on weak revenue guidance, while Dell Technologies rose 2% following stronger-than-expected first-quarter sales.

European shares erased early gains on Thursday, with the STOXX 50 closing flat and the STOXX 600 falling slightly as investors grew cautious over ongoing US trade policy uncertainty and weak economic data. Thyssenkrupp led the declines, dropping 5.4%, while Novo Nordisk and Siemens also slipped notably.

The US dollar index held steady around 99.4 today as investors awaited key inflation data, while the euro traded near 1.1350 amid concerns over US trade policy and growth. Despite recent tariff-related volatility, the dollar maintained its position against the euro as markets consider the Federal Reserve’s potential policy response to mixed signals.

Oil prices fell in Asian this morning, heading for a second consecutive weekly loss amid uncertainty over U.S. President Trump’s trade tariffs and stalled negotiations with China, which raised concerns about future demand. Attention also focused on an upcoming OPEC+ meeting, where members will decide on potential production changes, with recent signals suggesting limited output increases .

Equities on the move

The following companies experienced moves in their share price driven by analyst ratings, quarterly earnings, or other news:

Dell raised its annual profit forecast, driven by strong demand for its AI-powered servers equipped with Nvidia chips, despite some margin pressures from competition and tariffs. The company beat revenue estimates in the first quarter and expects continued growth, with a strong backlog of $14.4 billion in AI orders supporting its positive outlook.

Costco Wholesale missed third-quarter revenue expectations, citing challenges from U.S. tariffs and supply chain adjustments, but avoided raising prices unlike some rivals. Despite these pressures, strong demand for its private-label products and bulk buying boosted same-store sales by 8%, helping the company slightly beat earnings estimates with $4.28 per share.

Ulta Beauty raised its annual profit forecast after beating quarterly expectations, driven by strong demand for new and trendy brands like Milk Makeup and Elf Beauty. The company also benefited from lower inventory losses and increased sales, particularly from younger shoppers, while cautioning that consumer demand remains uncertain amid tariff-related challenges.

Gap warned tariffs will reduce its annual operating income by $250 million to $300 million, but provided forecasts excluding this impact, causing shares to fall 15% after hours. Despite tariff costs, Gap maintained its fiscal 2025 sales growth forecast of 1% to 2% and operating income growth of 8% to 10%, supported by strong first-quarter revenue and profits beating estimates.

Boeing aims to raise 737 MAX production to 42 planes per month by year-end and increase 787 output from five to seven monthly. Chinese deliveries are set to resume in June, with tariff impacts under $500 million, while 787 delivery delays due to seat certification are expected to continue through the year.

Elon Musk plans an uncrewed Starship flight to Mars by the end of 2026, contingent on overcoming key technical hurdles like in-orbit refuelling. Despite recent setbacks in test flights, he remains committed to accelerating the development timeline and aims for a future with large-scale human settlements on Mars.

NuScale Power received US regulatory approval for its 77-megawatt small nuclear reactor design, following a 60-megawatt version approved in 2020. The approval allows the design in licence applications but does not guarantee permits as the company aims to have the reactor in service by decade’s end.

Heidelberg Materials AG aims for 7-10% annual operating profit growth and a 12% return on invested capital by 2030, alongside ambitious sustainability targets including reducing CO2 emissions to under 400 kg per ton and increasing revenue from sustainable products to over 50%. Citi views these targets as achievable, with potential for further upside based on current estimates.

Jefferies downgraded GE Vernova to Hold from Buy, saying the equity’s valuation already reflects much of the optimism around growth, leaving limited upside. While raising its target to $517, it noted uncertainty in pricing trends and said longer-term opportunities like small modular reactors remain further off.

UBS Global Research analysts are confident Adidas will continue strong growth through 2025 and 2026, driven by a robust product pipeline and solid retailer demand despite macroeconomic volatility. They forecast revenue rising from €25.7 billion to €28.4 billion and net earnings increasing 45.7% to €2.03 billion, with no signs of slowing momentum.

Bank of America has downgraded several European insurance shares, including Allianz and Munich Re, due to peak valuation multiples and slowing earnings growth amid rising macroeconomic uncertainty. While the sector remains financially strong with attractive dividends, BofA warns of limited upside and expects some companies to focus on mergers and acquisitions.

Upcoming data and events

Key economic data due today include the US Core PCE Price Index and personal spending figures, which are closely watched for signs of inflation and consumer behaviour. Germany will also release its monthly CPI and Harmonized CPI data, offering insight into inflation trends in Europe’s largest economy.

This information is provided solely for educational and informational purposes and should not be construed as investment advice, advice on specific investments or investment decisions, tax advice, legal advice, or any other form of professional or regulatory advice. The information does not take into account your personal circumstances and is provided to you on the express understanding that it does not constitute advice and should not be relied upon in making any investment decision. Investing in financial instruments involves risk. You should conduct your own research before making any investment decisions and seek the assistance of a licensed financial advisor if you are unsure. No person should act on any opinion or information contained in this document without first obtaining appropriate professional advice. Calamatta Cuschieri Investment Services Limited does not accept liability for any actions, proceedings, costs, demands, expenses, damages, or losses suffered as a result of reliance on the information herein.