Good afternoon and welcome to Markets Desk.
German equities came under real pressure Tuesday, with the DAX sliding firmly into negative territory as three forces converged against sentiment — fading hopes for a Middle East ceasefire, climbing crude oil prices, and fresh confirmation that German consumer inflation accelerated in April, giving investors little reason to buy the dip.
Across the Channel, UK bond markets are flashing a serious warning sign. Thirty-year gilt yields hit their highest level this century as a leadership crisis surrounding Prime Minister Starmer rattled investor confidence. Cabinet ministers are reportedly pressuring Starmer to consider his position, and bond markets are responding the way they always do to political uncertainty — by demanding a higher premium to hold long-dated debt.
And stateside, a legal battle is brewing over tariff refunds. The federal government is preparing to return duties collected under President Trump's tariff regime, but companies receiving those refunds — from Costco to FedEx — are now facing lawsuits from customers who argue they passed those costs along and should now pass the savings back. Courts will ultimately decide whether consumers have standing, but the litigation wave is already building.
That's the tape. Markets Desk, signing off the floor.
