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Ottawa Backs Down on Digital Tax Dispute Amid Pressure from Trump White House

Canada has reportedly agreed to delay its planned digital services tax (DST) following pressure from former U.S. President Donald Trump’s administration, according to a recent statement from the White House. The tax, which was originally slated to target tech giants like Amazon, Meta, and Google, had been a major sticking point in U.S.-Canada trade discussions. The White House claimed Canada “caved” to U.S. demands after months of negotiations, with Trump’s team arguing the tax unfairly targeted American firms. The Canadian government, however, framed the delay as a strategic move to preserve economic stability and avoid retaliatory tariffs. Critics within Canada argue that the government’s decision reflects a growing trend of yielding to U.S. economic influence, while others say the delay is pragmatic given ongoing global talks about a coordinated approach to taxing digital revenues. The issue remains contentious, and observers are watching closely to see whether Canada will revive th...
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Earnings Optimism Lifts Stocks at Start of Fed Week

 

Stock markets around the world are riding the wave of earnings optimism as traders gear up for a busy week of company results. Here are the key highlights:

Asian Stocks Rise, Yen in Focus

  • Asian stocks climbed, following the rally in US markets after an inflation reading eased concerns about a more hawkish Federal Reserve.
  • Equities in Australia and South Korea opened higher, while the Japanese stock market remained closed for a holiday.
  • US futures nudged higher after the S&P 500 rose 1% on Friday.
  • Yen traders are closely monitoring efforts to support the currency, which is currently at its weakest level in more than three decades.

Tech Earnings and Global Stocks

  • Asian technology stocks may see movement in early trading after strong earnings reports from Microsoft Corp. and Google’s parent, Alphabet Inc. These results underscore the value of investments in artificial intelligence and cloud computing.
  • The rally in tech shares has helped mitigate the global stock market’s decline this month (the first monthly loss since October). Concerns over lingering inflation pressures and geopolitical tensions in the Middle East have weighed on investor sentiment.
  • While the recent correction may be over, there remains a risk that it’s merely a bounce from oversold conditions. However, stocks are likely to see further gains as disinflation resumes, central banks maintain high interest rates, and recession risks remain low.

Fed Meeting in Focus

  • Traders are closely watching the Federal Reserve’s policy meeting scheduled for Wednesday. The central bank’s preferred measure of inflation rose briskly in March, roughly in line with estimates.
  • While officials are expected to keep rates steady at a more than two-decade high, the focus will be on any shift in the tone of the post-meeting statement and Chair Jerome Powell’s press conference.
  • Societe Generale economists suggest that the FOMC will likely row back from earlier predictions of meaningful policy easing this year, given the recent acceleration in US consumer prices.

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