US stock-index futures are ticking higher after a steep drop in the market yesterday. European stocks are following the US lower. 

European equity futures retreat with Asian stocks amid uncertainty over Trump's tariffs. US equities failed to stage a rebound even after a decision by Trump to delay levies on Mexican and Canadian goods covered by the North American trade deal. Meanwhile, China's exports hit a record so far this year as higher US tariffs, and the threat of more to come, drove frontloading of shipments.

The euro climbs against the greenback. The EU agreed to begin discussions on a long-term reform of its fiscal rules to allow member states to spend more on defense, following a push from Germany. The Bloomberg Dollar Spot Index edges down.

Asian equities were primed for early declines on Friday after US stocks tumbled amid whipsawing tariff headlines. The rout in German bunds slowed down, with 10-year yields rising a modest 4bps, while short-end US yields declined before Friday's payrolls report.

The US exempted Mexican and Canadian goods covered by the North American trade agreement known as USMCA from its 25% tariffs, offering major reprieves to the US's two largest trading partners.