LIVE MARKETS-Before the bell: bouncing like in COVID times

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BEFORE THE BELL: BOUNCING LIKE IN COVID TIMES

A 90-day reprieve on most new U.S. tariffs has triggered a global relief rally.

In Europe, this is pushing EuroSTOXX50 futures up around 8%, the biggest one-day surge since during the wild swings of the COVID pandemic crisis in March 2020.

Banks, which were hit by concerns a recession could sour their loan books, are surging even more, with futures on that sector up 11%.

Uncertainty however looks here to stay, with Washington intensifying a trade war with Beijing and more wild swings, in either direction, might well be in store.

U.S. futures pointed to declines of nearly 1% after a sharp rebound on Wall Street the day before that saw the Nasdaq outperforming with an over 12% surge. All the Mag-7 stocks were lower in early Frankfurt trading. Tesla TSLA.F was down 1.5%.

Corporate news was unlikely to drive single share price moves, with the tariff relief setting the stage for a broad based rebound across the board.

Traders anticipated gains over 10% for automotive groups Stellantis STLAM.MI and BMW BMWG.DE, cable maker Prysmian PRY.MI, chip makers STMicro STMPA.PA and Infineon IFXGn.DE, banks SocGen SOGN.PA and Deutsche Bank DBKGn.DE, Siemens Energy ENR1n.DE and Orsted ORSTED.CO.

Tesco TSCO.L, meanwhile, warned profit would likely fall this year, reflecting an increase in the competitive intensity of the UK market. Traders however expected shares in Britain's biggest food retailer to rise at the open.

Swiss chocolate maker Barry Callebaut BARN.S lowered its annual volume guidance due to what it called unprecedented volatility in cocoa bean prices.

(Danilo Masoni)

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SIGNS OF TROUBLE IN THE RELIEF RALLY CLICK HERE