Bright signs from Beijing, bad signs of apple

Check out the European and global markets of Ankur Banerjee the day before

The possible reduction in trade tensions between Beijing and Washington provided markets on Friday, boosting risk sentiment and boosting stocks globally, just as Apple’s revenue reminded the real cost of the trade war.

China's Commerce Ministry said Beijing is “evaluating” Washington's proposal to hold talks on 145% tariffs by U.S. President Donald Trump, while Beijing's doors are open to discuss. However, at the same time, China said Washington needs to show “sincerity” in the negotiations and should be prepared to cancel its unilateral tariffs.

The prospects of trade talks help alleviate investor concerns about tariffs that have stirred up global markets and triggered fears of a downturn. Data from the world's two largest economies are already showing signs of weakness.

The S&P 500 and Nasdaq futures surged, while Europe's Burssy headlined by oil Major Shell and German chemical group BASF ahead of revenue from a range of companies.

The revenue season to date highlights the unstable U.S. trade policies and the costs of back and forth tariffs, which prompts many companies around the world to lower their profit forecasts or withdraw them altogether.

Apple cut its share buyback program by $10 billion on Thursday, warning that tariffs could add about $900 million in costs this quarter, which has put some optimism down strong results for Microsoft and Meta platforms.

Apple CEO Tim Cook also outlines how iPhone manufacturers start storing products so that most devices sold in the U.S. this quarter won’t come from China.

Although the market seems to have taken solace from Beijing’s comments, the reality is that there is still no solution in any trade negotiations the United States has held with its allies so far.

This is particularly evident when Japan's Treasury Secretary said Friday that the country could use more than $1 trillion in U.S. Treasury bonds as a card for trade talks with Washington, which first explicitly improves its leverage as a large number of U.S. creditors.

Major developments that may affect the market on Friday:

Economic Events: April Flash Inflation Data in Eurozone, April Made PMI Data in France and Germany

Income: ING, BASF, NatWest, shell

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(Edited by Ankur Banerjee; Edmund Klamann)