Recent developments in the financial markets have demonstrated how global political shifts can directly influence the performance of major Asian and US indices. The recent recovery of stock markets, fueled by hopes that Washington may reconsider its aggressive tariff policies, has provided traders and analysts with room for cautious optimism.

The 3.1% drop in the STOXX 600 index last Friday has become a clear indication that the market is entering a corrective phase. After reaching a record high on March 3, the index has fallen by over 10% from its peak, signaling drastic changes in market dynamics. This decline follows a 2.6% drop on the previous day, which came on the heels of US President Donald Trump's announcement of extensive tariff measures. These new tariffs sent shockwaves through global stock markets, adding further pressure on the STOXX 600 and emphasizing the vulnerability of markets to external economic and political factors.

Over the past week, global and European stock indices have shown mixed performance. Despite a modest gain during the week, Friday’s decline highlighted market volatility and uncertainty that continue to shape the global economy. At the same time, the US dollar managed to push the euro away from its recent five-month high, underscoring the critical role of the currency market in the current macroeconomic landscape.

In recent days, global stock markets have shown a steady stabilization, particularly noticeable on Friday ahead of the release of crucial U.S. employment data. Investors are cautiously optimistic, yet questions abound, fueled by concerns over a potential trade war and Japan's next moves on interest rates.