Before the bell: ceasefire until 9 July

With the United States and Europe agreeing to a temporary ceasefire in their trade war until 9 July, markets are expected to open in the green. Meanwhile, uranium stocks are powering ahead.

Should the European Union be paying a 50 percent tariff on all its exports to the United States? If it were up to President Trump, yes. On Friday, the Euro Stoxx 50 and the S&P 500 fell after Trump posted on social media that trade talks with Europe were “going nowhere.” He then threatened to raise the current 10 percent tariff on European exports to 50 percent starting 1 June. Markets, however, seem sceptical. While the Euro Stoxx 50 closed 1.8 percent lower, it is still trading higher than it was in early April, when Trump rolled out his global tariff hike plan. The S&P 500 limited its losses to just 0.7 percent. Markets were right to take Trump’s threat with a grain of salt. Overnight, he announced that after a phone call with Ursula von der Leyen, the European Union would be granted extra time to negotiate—until 9 July. For now, the threat of higher tariffs has been shelved. That should support a positive market open today.

In China, the biggest mover was carmaker BYD, which fell 5.6 percent after it cut prices on its vehicles last week—raising fears of a looming price war among analysts. There will be no trading in the United States today due to Memorial Day.

Who’s on the line?

Did Trump and Ursula von der Leyen speak via iPhone or Samsung? We doubt it. Trump has long been at odds with Apple CEO Tim Cook. The president wants iPhone production brought back to the United States, but Apple is clearly uninterested. As a compromise, Apple has been shifting production for the American market to India. That, however, doesn’t sit well with Trump. If Apple goes ahead, he warned, Cook can expect a 25 percent tariff. Apple shares have lost 6.1 percent over the past five days, while rival Samsung Electronics is down 3.9 percent. In a press conference, Trump said similar tariffs would apply to other smartphone manufacturers in order to “level the playing field.” Whether a quick call from Trump to Tim Cook can resolve the issue remains to be seen.

Uranium stocks melt up

It’s an exciting time for uranium investors. On Friday, the entire sector surged after Trump announced he would sign executive orders to support the nuclear industry. The new measures aim to streamline regulation for building new reactors and promote domestic uranium mining and enrichment. Trump previously scrapped subsidies for renewables but left nuclear support intact. Today, uranium stocks are rallying again on the Australian market. Deep Yellow is up 10.8 percent, Paladin Energy gained 10.4 percent, and others are following suit. On Friday, Western-listed stocks like Cameco (+11.1 percent) and Yellow Cake (+8.3 percent) also posted strong gains. The Sprott Junior Uranium Miners ETF jumped more than 15 percent. One thing is clear: with new data centres opening globally, energy demand will continue rising. Nuclear power will remain part of the solution.

Did you know…

The United States’ electricity consumption is set to hit record highs in 2025 and 2026, according to government forecasts? After nearly two decades of stagnation, demand is being driven by expanding AI data centres and crypto mining operations. Households and businesses are also increasingly using electricity for heating and transport.

This article was translated from Dutch and was originally published on Spaarvarkens.be.