A look at the day ahead in European and global markets from

Vidya Ranganathan

It's too soon to say "Salud" but the week begins with

somewhat conciliatory messages from U.S. President Donald Trump

on tariffs, coming right after the Fed's cheery assessment of

the economy.

The S&P 500 futures are up after a light gain

on Friday when Trump hinted at flexibility. But after a

roller-coaster first two months in power - including tariff hits

on China, Mexico and Canada - traders are shy about betting that

Trump is ready to cut deals.

Trump said that he planned to speak with Chinese President

Xi Jinping and that the U.S. trade chief would speak with his

Chinese counterpart this week.

U.S. Republican Senator Steve Daines and heads of several

foreign firms including Apple ( AAPL ) and Pfizer ( PFE ) met

Chinese Vice Premier He Lifeng on Sunday and were assured of the

country's business potential.

Monday will see the release of global purchasing managers

index (PMI) gauges, probably validating the sudden fiscal

policy-spurred impetus for the German, French and other European

economies.

And, in weekend news, Bloomberg reported that the U.S. hopes

to reach a Russia-Ukraine truce agreement by April 20, while

Trump said efforts to temper the conflict were "somewhat under

control".

Yet, despite all that, markets remain hung up on Trump's

proposed reciprocal tariffs on trading partner countries.

By latest accounts, tariffs are imminent and effective

immediately, particularly on the 15% of countries that have the

highest tariffs and large trading volumes with the U.S., which

Treasury Secretary Scott Bessent refers to as the "Dirty 15".

The European Union is in a placatory mood and has delayed

its first counter-measures against the United States until

mid-April.

That means the 50% tariffs on U.S. bourbon, wine, toilet

paper and other goods are under review.

France and Italy, the largest exporters of wine to the

United States, are keen to avoid a trade war, as is Prime

Minister Micheal Martin of whiskey-exporter Ireland, who was

pleased Europe has decided to "wisely and strategically

respond".

Besides PMIs, the rest of the week holds the U.S. Federal

Reserve's preferred inflation reading, inflation data in

Australia and Japan, a budget update in Britain and major

earnings in China.

Fed officials said last week the U.S. economy was strong but

backed a cautious policy approach due to economic uncertainty.

In emerging markets, Turkey's lira is on a

knife's edge as the jailing of President Tayyip Erdogan's main

rival unsettles investors.

Key developments that could influence markets on Monday:

SPEAKERS: Fed Governor Michael Barr, Bank of England

Governor Andrew Bailey

EARNINGS: Hargreaves Lansdown PLC, Travis Perkins PLC

DATA: Flash PMIs for France, Germany, UK, Euro Zone

DEBT AUCTIONS: France - reopening of 3-month, 6-month and

1-year auctions, Germany -reopening of 3-month and 9-month

government debt auctions