Investors are expected to keep an eye on trade tensions between the U.S. and its traditional allies, including Canada and the European Union. U.S. President Donald Trump on the weekend withdrew his support for a G-7 declaration and criticized Canadian Prime Minister Justin Trudeau for being “dishonest and weak.”
The Trump administration had applied tariffs on aluminum and steel tariffs on other G-7 members ahead of the G-7 summit last week. German Chancellor Angela Merkel said the EU was preparing its own countermeasures against the U.S., Reuters reported.
U.S. stocks closed slightly higher on Friday, with major indexes finishing the week higher despite caution over trade-related tensions playing out at the G-7 summit, which concluded on Saturday. The major averages rose at least 1.2 percent for the week.
The gains notched stateside on Friday were in contrast to declines seen in European and Asian markets in the last session, with the pan-European Stoxx 600 slipping 0.21 percent. MSCI’s index of shares in Asia Pacific excluding Japan had fallen more than 1 percent in the previous session.
Meanwhile, a planned summit between Trump and North Korean leader Kim Jong Un that’s taking place in Singapore on Tuesday is expected to take center stage. Both arrived in the country on Sunday and are set to make history as the first sitting leaders of their respective countries to meet face-to-face.
Central banks are expected to come into focus later in the week, with Federal Reserve and European Central Bank meetings in the days ahead. The Fed is expected to announce an interest rate hike and the ECB has said it will be discussing how it will wind down its asset-purchasing program.