Positive sentiment increased in global markets following the announcement of the US’s decision to delay and exempt trade tariffs. While the protective trade policies of the US remain in focus for investors, news flow related to countries’ negotiation efforts is closely monitored. The increased risk appetite following the announcement that reciprocal tariffs will not be applied to semiconductors and some technology products continues to influence market direction. President Donald Trump, in his recent statements, mentioned that they would soon announce sectoral tariffs for pharmaceuticals, indicating their desire to bring pharmaceutical production back to the country. Trump stated that his opinion on tariffs would not change but that he could be flexible and did not intend to hurt anyone. Kevin Hassett, Director of the White House National Economic Council, also noted receiving very good trade deal offers during tariff negotiations and expressed that the US would definitely not enter a recession this year. As Fed officials’ statements are being monitored, Fed Board Member Christopher Waller explained that if businesses quickly and fully pass on tariff costs, inflation could approach 5% in the coming months. Waller noted that he believed the risk of recession would outweigh the risk of inflation. TECHNOLOGY STOCKS POSITIVE Analysts mentioned that exempting some technology products from reciprocal tariffs was a significant gain for major technology companies, but uncertainty still lingers. Following these developments, Apple’s shares rose by 2.2%, Alphabet’s by 1.3%, while Meta’s shares decreased by 1.2% and Amazon’s by 1.5%. PREPARATION FOR AUTO EXEMPTION After Trump stated that automobile manufacturers needed “some time to move their production to the US” and that he wanted to help automobile companies, the movement in the shares of companies operating in this sector also garnered attention. Following the statements, Ford Motor’s shares rose by 4%, General Motors’ by 3.5%, and Stellantis’ by 5.6%. FIRST CONTACT BETWEEN EU AND US European stock markets closed positively yesterday with an increased risk appetite parallel to negotiation optimism, while the EU and the US held their first contact regarding negotiations. Maros Sefcovic, EU Commissioner for Trade, who is in the US for tariff-related discussions, met with US Trade Secretary Howard Lutnick and US Trade Representative Jamieson Greer. Emphasizing that the EU remained ready for a constructive and fair deal, including the proposal for zero customs duties on industrial goods and work on non-tariff barriers, Sefcovic noted that both sides needed to make efforts for this to be achieved. FEAR INDEX DECLINES, STOCKS RISE Following the latest developments on tariffs, the Volatility Index, known as the “fear index” and showing fluctuations in the S&P 500 Index, dropped by around 17.8% to 30.9. Yesterday, on the New York Stock Exchange, the Nasdaq index gained 0.64%, the S&P 500 index 0.79%, and the Dow Jones index 0.78%. Index futures in the US started with a new decline. In the UK, the FTSE 100 index rose by 2.14%, the DAX 40 in Germany by 2.85%, the CAC 40 in France by 2.37%, and the FTSE MIB 30 in Italy by 2.88%. Futures contracts in Europe started the day with a positive trend. While the Nikkei 225 index in Japan rose by 1.1%, the Kospi index in South Korea by 1%, and the Hang Seng index in Hong Kong by 0.1%, the Shanghai Composite index in China decreased by 0.3%. DEMAND FOR SAFE HAVENS CONTINUES US 10-year bonds were traded predominantly upwards yesterday, and the 10-year bond yields are currently stabilizing at 4.36% with an 11 basis point decrease. The dollar index is trading at 99.7 levels with a 0.2% decrease. The price of gold per ounce completed yesterday with a 0.9% decrease at $3,210 and is trading at $3,228 with a 0.5% increase today. The barrel price of Brent crude oil is currently at $64.6 with a 0.1% gain.