Monday, May 26

High-Level Voices: 
U.S. President Trump recently stated that the EU requested an extension of the trade negotiation window, and he has agreed to extend the deadline to July 9.

Overall Sentiment: 
On Friday, Trump stated that due to unsuccessful negotiations with the EU, he would ignore the previously mentioned buffer period and impose a 50% tariff on the EU starting June 1. This led to a U.S. stock market drop of up to 2% on Friday, though it recovered half the losses by close. Over the weekend, a reversal occurred, with Trump announcing that the EU had softened its stance, and he agreed to extend the buffer period back to July 9. After this round of turbulence, Europe is likely to adopt a less hardline stance in trade negotiations. 
The financial market's reaction to Trump's moves is becoming increasingly muted, as his tactic of extreme pressure has largely been figured out.