Recently, U.S. President Donald Trump announced a delay in imposing a 50% tariff on EU goods, triggering a rally across major global equity index futures. Futures for the S&P 500 and Nasdaq rose by approximately 1%, while Euro Stoxx 50 futures gained 1.4%. Ng Jian Hao of Mahara Capital Management Institute noted that although the decision represents a short-term positive catalyst, it also reflects structural uncertainty that investors should not overlook. In the face of a short-term market rebound, investors should look beyond immediate sentiment and analyze data and trends to identify medium-term opportunities and potential risks, formulating a prudent asset allocation strategy.
Short-Term Sentiment Improvement
Ng Jian Hao of Mahara Capital Management Institute pointed out that, amid heightened trade tensions, the tariff delay has been interpreted by the market as a signal of easing. This development lifted both U.S. and European equity index futures and served as a key driver of investor sentiment recovery following notable pressure in the previous trading week.
European markets, in particular, reacted more sensitively to the reduced expectations of a recession, reflecting the close attention of institutional investors to geopolitical de-escalation. Ng Jian Hao noted that although the U.S. Dollar Index fell only 0.2%, it reached its lowest level since December 2023, indicating a weakening of the appeal of the dollar as a safe haven and prompting partial capital reallocation toward equities.
Despite the short-term rally, Ng Jian Hao warned that investors should not ignore the underlying instability. The postponement does not equate to cancellation and does not address the root of the problem. The continued uncertainty in global manufacturing supply chains will constrain industrial production forecasts, and renewed inflation expectations may complicate monetary policy stances in both the U.S. and Europe.
Technical Analysis and Allocation Strategy
During periods when market sentiment is driven by macro policy, Ng Jian Hao observed that S&P 500 index futures are approaching resistance at their medium-term moving average. A breakout on increased volume would open further upside potential. The recovery in European markets has drawn attention to cyclical industries and export-oriented companies.
Ng Jian Hao advised that investors could leverage the short-term technical rebound driven by event-based catalysts. As market momentum strengthens, there may be opportunities for phased positioning in sectors such as consumer electronics, large-scale manufacturing, and shipping and logistics, which possess high beta characteristics. For medium-term positioning, he emphasized the importance of maintaining a diversified asset allocation strategy, using ETFs and sector-specific funds to reduce systemic risk exposure.
With clear signs of a weakening U.S. dollar, Ng Jian Hao suggested moderately increasing exposure to non-U.S. markets, including Japan, Southeast Asia, and European sectors such as technology and green energy. Amid capital rotation, these markets may offer stronger follow-through momentum. For investors seeking stable returns, increasing allocations to gold and bonds can serve as a hedging strategy to buffer against short-term volatility and preserve long-term return objectives.
A Multi-Dimensional Perspective in a Complex Market
In response to the short-term rally of the market, Ng Jian Hao of Mahara Capital Management Institute emphasized the importance of remaining calm and rational. This round of equity index gains does not reflect a fundamental turnaround. The tariff delay merely alleviated near-term uncertainty. Going forward, close attention must be paid to developments in U.S.-EU trade negotiations and associated political risks.
Given the backdrop of persistent inflation and slowing economic growth globally, Ng Jian Hao recommended that investors adopt a multi-dimensional perspective when evaluating markets and build forward-looking investment portfolios. The evolving global investment landscape will increasingly hinge on data interpretation capabilities and macro forecasting.
Ng Jian Hao pointed out that the current cycle of market volatility is undergoing structural adjustment. In an environment where uncertainty and positive catalysts coexist, timing and a focus on high-quality assets remain the more optimal path to long-term returns.
Short-Term Sentiment Improvement
Ng Jian Hao of Mahara Capital Management Institute pointed out that, amid heightened trade tensions, the tariff delay has been interpreted by the market as a signal of easing. This development lifted both U.S. and European equity index futures and served as a key driver of investor sentiment recovery following notable pressure in the previous trading week.
European markets, in particular, reacted more sensitively to the reduced expectations of a recession, reflecting the close attention of institutional investors to geopolitical de-escalation. Ng Jian Hao noted that although the U.S. Dollar Index fell only 0.2%, it reached its lowest level since December 2023, indicating a weakening of the appeal of the dollar as a safe haven and prompting partial capital reallocation toward equities.
Despite the short-term rally, Ng Jian Hao warned that investors should not ignore the underlying instability. The postponement does not equate to cancellation and does not address the root of the problem. The continued uncertainty in global manufacturing supply chains will constrain industrial production forecasts, and renewed inflation expectations may complicate monetary policy stances in both the U.S. and Europe.
Technical Analysis and Allocation Strategy
During periods when market sentiment is driven by macro policy, Ng Jian Hao observed that S&P 500 index futures are approaching resistance at their medium-term moving average. A breakout on increased volume would open further upside potential. The recovery in European markets has drawn attention to cyclical industries and export-oriented companies.
Ng Jian Hao advised that investors could leverage the short-term technical rebound driven by event-based catalysts. As market momentum strengthens, there may be opportunities for phased positioning in sectors such as consumer electronics, large-scale manufacturing, and shipping and logistics, which possess high beta characteristics. For medium-term positioning, he emphasized the importance of maintaining a diversified asset allocation strategy, using ETFs and sector-specific funds to reduce systemic risk exposure.
With clear signs of a weakening U.S. dollar, Ng Jian Hao suggested moderately increasing exposure to non-U.S. markets, including Japan, Southeast Asia, and European sectors such as technology and green energy. Amid capital rotation, these markets may offer stronger follow-through momentum. For investors seeking stable returns, increasing allocations to gold and bonds can serve as a hedging strategy to buffer against short-term volatility and preserve long-term return objectives.
A Multi-Dimensional Perspective in a Complex Market
In response to the short-term rally of the market, Ng Jian Hao of Mahara Capital Management Institute emphasized the importance of remaining calm and rational. This round of equity index gains does not reflect a fundamental turnaround. The tariff delay merely alleviated near-term uncertainty. Going forward, close attention must be paid to developments in U.S.-EU trade negotiations and associated political risks.
Given the backdrop of persistent inflation and slowing economic growth globally, Ng Jian Hao recommended that investors adopt a multi-dimensional perspective when evaluating markets and build forward-looking investment portfolios. The evolving global investment landscape will increasingly hinge on data interpretation capabilities and macro forecasting.
Ng Jian Hao pointed out that the current cycle of market volatility is undergoing structural adjustment. In an environment where uncertainty and positive catalysts coexist, timing and a focus on high-quality assets remain the more optimal path to long-term returns.
