Trump's policy adjustment alleviates market pressure: European stock funds attract capital, U.S. tech earnings become the focus

Taiwan • Business • 04/29 06:01
Trump's policy adjustment alleviates market pressure: European stock funds attract capital, U.S. tech earnings become the focus

President Trump's recent shift in stance on trade and monetary policy has eased global market tensions, resulting in significant changes in capital flows. European equity funds experienced a net inflow of $3.355 billion over the course of a week, indicating an increasing investor preference for regional diversification. U.S. tech giants are entering a busy earnings season, becoming the market focus. Even though many earnings reports exceeded expectations, market reactions have remained cautious due to persistent policy uncertainties. Investors are adjusting their asset allocation strategies to focus on industries with strong fundamentals.

Key Updates

04/30 01:01

The United States and India reached a trade agreement for the first time, leading the Dow Jones Index to jump 300 points, and both TSMC's ADR and Tesla's stock prices increased.

On April 29, 2025, U.S. Secretary of Commerce, Lutnick, announced that the Trump administration had completed its first trade agreement, pending approval from the counterpart government, with India possibly being the partner. This news drove U.S. stocks higher, with the Dow Jones index rising by 300 points and the stock prices of TSMC ADR and Tesla also increasing. U.S.-China trade tensions intensified, with both sides imposing significant tariffs on each other. The U.S. imposed tariffs of up to 245% on Chinese goods, while China responded with retaliatory tariffs of 125% on U.S. goods.

04/29 23:01

The Dow Jones rose 300 points, achieving six consecutive days of gains, as the White House announced a trade agreement. In Trump's first 100 days, the stock market performance was the worst in half a century.

On April 29, 2025, the three major U.S. stock indices rose, with the Dow Jones climbing 300.03 points to 40,527.62, achieving a six-day winning streak. The S&P 500 Index and Nasdaq indices also rose for the sixth consecutive day. The White House announced a trade agreement with an undisclosed country and signed an executive order to lower automobile tariffs, boosting the stock market. Nevertheless, the stock market performance in the first 100 days of Trump's second term was the worst in fifty years, with significant declines in technology and small-cap indices, indicating internal market divisions.

04/29 22:32

US Ends Tax-Free Status for Chinese E-commerce: How Are Temu Orders Still Untaxed?

In April 2025, American consumers shopping on the Temu platform noticed that some orders were not subject to import fees, despite the Trump administration revoking the "de minimis" tax exemption for China and Hong Kong on May 2. This move drew attention as tariffs as high as 145% and import fees up to $200 per package are about to be implemented. The article explores the legal background of the U.S. "de minimis" system and how Chinese e-commerce platforms such as Temu and Shein have leveraged this system for cross-border sales, and analyzes the impact of these policy changes on their business models.

04/29 17:30

U.S. Treasury Secretary Mnuchin: Ordinary investors continue to hold stocks due to their trust in President Trump.

At a White House press conference on April 29, U.S. Treasury Secretary Scott Bessant stated that despite market fluctuations due to President Trump's high tariff policies, ordinary investors continue to hold their stocks, indicating their trust in Trump. Bessant cited data from Vanguard, noting that 97% of Americans refrained from stock trading during the first 100 days of Trump's presidency, which reflects confidence in his policies. Against this backdrop, the Trump administration is conducting trade negotiations with several countries and exerting pressure on China.

04/29 11:04

The Dow Jones Industrial Average surpassed 40,446 points, as the three major U.S. stock market indices rose simultaneously, fueled by strong corporate earnings and positive economic data.

On April 29, 2025, the three major U.S. stock market indices closed higher, with the Dow Jones Industrial Average closing at 40,446 points, the S&P 500 at 5,564.75 points, and the Nasdaq 100 at 19,577 points. The rally was driven by the market's focus on corporate earnings reports and economic data, despite mixed performance among tech stocks. The S&P 500 rose for the fifth consecutive day, marking its longest streak since November 2024. With earnings season at its peak, 180 S&P component companies are set to release their results, and the market remains cautious about the future outlook.

04/29 06:01

Trump's policy adjustment alleviates market pressure: European stock funds attract capital, U.S. tech earnings become the focus

President Trump's recent shift in stance on trade and monetary policy has eased global market tensions, resulting in significant changes in capital flows. European equity funds experienced a net inflow of $3.355 billion over the course of a week, indicating an increasing investor preference for regional diversification. U.S. tech giants are entering a busy earnings season, becoming the market focus. Even though many earnings reports exceeded expectations, market reactions have remained cautious due to persistent policy uncertainties. Investors are adjusting their asset allocation strategies to focus on industries with strong fundamentals.

04/29 03:06

U.S. stocks closing higher boosts investor confidence, Taiwan stocks fluctuate but maintain the 20,000-point level, and investors are focusing on earnings reports and economic data.

Following the major U.S. stock indices closing in the green, the Taiwan stock market turned positive after a slight dip in early trading on April 29th, with the index hovering around the 20,000-point mark. TSMC's stock price slightly declined, failing to continue the previous day's upward trend. Global market sentiment improved due to progress in tariff negotiations between the U.S. and several other countries, as investors focus on upcoming corporate earnings reports and U.S. economic data. Although market uncertainty persists, the overall atmosphere has stabilized compared to earlier periods.

04/28 10:00

After a 2,800-point rebound, US stocks face pressure from the seasonal moving average: AI demand, tariff policies, and US debt maturity are drawing market attention.

Recently, the US stock market rebounded by about 2,800 points, but it is approaching the resistance of the quarterly moving average, and market sentiment is cautious. Strong AI demand indicates that chip demand is outpacing supply, but tariff policy pressures are impacting the earnings reports of tech giants. The upcoming maturity of $6.5 trillion in US national debt has sparked debates on liquidity and debt sustainability. The trade and domestic policies from the Trump era are affecting investment confidence, boosting the performance of defense, aerospace, and cybersecurity stocks.

04/28 07:04

JPMorgan forecasts a 5% increase in the US stock market by 2025, boosted by strong corporate performance, stock buyback plans, and loose monetary policies, while Trump's pressure on the Fed causes market volatility.

JPMorgan forecasts a 5% rise in the US stock market by 2025 due to robust corporate capital spending, share repurchase programs, and the Federal Reserve's continuation of accommodative policies. Following Trump's return to the White House, he exerted pressure on the Federal Reserve to lower interest rates, which led to market volatility, underscoring the effects of policy uncertainty. A JPMorgan survey indicates that the risk of stagflation in the US economy surpasses that of a recession, and there are differing opinions on the future economic landscape.

04/28 07:04

U.S. stock futures decline: Dow futures, Nasdaq 100 futures, and S&P 500 futures impacted by corporate earnings and China-U.S. trade tensions

On April 28, 2025, U.S. stock index futures fell during the Asian trading session. At 1:31 PM Taipei local time, Dow Jones Industrial Average futures dropped 187 points, S&P 500 futures fell 31.5 points, and Nasdaq 100 futures decreased 126 points. Market sentiment was influenced by corporate earnings reports, rising e-commerce prices, and U.S.-China trade tensions, with particular focus on the performance of tech giants. The new U.S. tariff policy caused price increases for products from SHEIN and Amazon, further undermining consumer confidence.

Trump's Policy Shift Eases Market Tensions

Recently, U.S. President Trump has shown a noticeable softening in his attitude towards the Federal Reserve and international financial institutions, which the market interprets as a temporary reduction in policy risk. According to a report by "U-Analysis," the Trump administration signaled that it would not immediately withdraw from the International Monetary Fund (IMF) and the World Bank, and has temporarily halted public criticism of Federal Reserve Chairman Powell. This move is seen as a reassurance to the market. Trump also stated that he would engage in more conciliatory trade talks with China, alleviating concerns about an escalation in the trade war.

This series of policy shifts is partly due to pressure from the market's own reactions. Previously, U.S. bonds, the dollar, and U.S. stocks fell simultaneously, indicating the market's high sensitivity to policy uncertainty. Veteran journalist Chen Fengxin pointed out that Trump initially attempted to direct funds into the U.S. bond market to lower yields, but this resulted in a drop in bond prices and a rise in yields, thereby increasing the U.S. government's financing pressure. This outcome forced Trump to adjust his strategy and seek monetary easing support from the Federal Reserve.

European Stock Funds Lead in Capital Inflow

Against the backdrop of eased policy risks, there has been a noticeable shift in capital flows. According to EPFR statistics, during the week of April 17-23, 2025, developed European equity funds saw a net inflow of $3.355 billion, leading major global markets. Asian (excluding Japan) equity funds also recorded a net inflow of $758 million, while U.S. equity funds experienced a slight net outflow of $847 million.

Allianz Investment Trust noted that the Trump administration's softened stance on trade with China and Federal Reserve policies has helped boost market sentiment. The capital attraction effect in the European market also reflects an increased demand from investors for regional risk diversification. Invesco's report shows that European ETFs attracted a record $93 billion in the first quarter of 2025, indicating a rising preference for European assets among investors, especially against the backdrop of increased concentration risk in the U.S. market.

U.S. Tech Stocks' Earnings Reports Become Market Focus

Meanwhile, U.S. tech giants are entering a period of intensive earnings releases, becoming the core of market observation. Four major companies among the "Big Tech"—Apple, Amazon, Meta, and Microsoft—will successively announce their latest quarterly earnings. According to FactSet data, so far, 73% of S&P 500 companies have reported earnings exceeding expectations, slightly below the five-year average of 77%.

However, the market's reaction to earnings reports is relatively conservative. Analysts point out that even if corporate earnings are strong, stock price reactions may still be limited by overall economic uncertainty and policy risks. For example, Google's earnings exceeded expectations, but its stock price only rose by about 1.5%. This reflects the market's cautious attitude towards future prospects.

Allianz Global Investors stated that in the context of Trump's fluctuating trade policies and uncertain economic outlook, tech stocks' earnings reports have become a market weather vane. Due to the high interconnection between the tech industry and the global supply chain, any policy changes could impact their operations. If earnings fall short of expectations, it could trigger significant market volatility.

Investor Sentiment and Asset Allocation Strategy Adjustments

As market sentiment warms, investors are also adjusting their asset allocation strategies. The manager of Allianz Income Growth Multi-Asset Fund pointed out that recent capital inflows mainly come from aggressive investors positioning early, but the overall economic and policy environment remains full of uncertainty. Investors are advised to adopt a "diversified and flexible" strategy, focusing on industries with solid fundamentals and growth potential.

Additionally, the AI-related industry continues to attract attention. Allianz AI Income and Growth Multi-Asset Fund manager Karen Zhuang stated that the AI server GB300 is expected to begin mass production by the end of the year, and the related supply chain is likely to respond in advance. Despite the volatility in tariff policies, some AI concept stocks are still considered valuable investment opportunities.

References

People Also Ask...

faq

Does Trump's shift in policy have any impact on climate change?

faq

How significantly do Trump's policy changes affect European stock funds' ability to attract capital?

faq

How significantly do Trump's policy changes affect the attraction of capital to European stock funds?