The bulls are back in charge, for now at least.

After a week where Mr Trump found out who is actually the boss, its the bond market, this week is starting where it left off and the polar opposite to the start of the previous week. The optimists are back in charge as Trump appears to offer more concessions to his announced tariffs. The Trump administration announced in a filing late Friday that smartphones and several other categories of products would be exempt from tariffs imposed earlier this month. This news, along with comments from Boston Fed chief Susan Collins to the FT that the Fed would “absolutely be prepared” to deploy its firepower to stabilise financial markets should conditions become disorderly. Though not clarifying what sort of disorderly, adding this did not necessarily mean interest rate cuts.

New York Fed chief John Williams highlighted fears many have that any trade war will slow growth and increase prices in the future. There was more good news on the inflation front on Friday after Thursday’s better-than-expected CPI as US producer prices fell more than expected in March, a further indication that inflationary pressures may be easing in the short term. However, the 2-year treasury did not react much to the news. Whether this is a temporary dip is to be seen as retailers across America are apparently preparing to increase prices as they prepare for product shortages.

JP Morgan’s results kicked off earnings season on Friday, and they were well received in themselves; however, to no great surprise, Jamie Dimon warned that the US economy is “facing considerable” turbulence and that it’s even money if it enters a recession. He is basically stating the obvious, and he hasn’t a clue whether the US will go into recession.

There was some surprisingly good news for the UK economy on Friday. The latest GDP figures indicated that the UK economy grew by 0.5% in February, against expectations of 0.1% and zero in January. Growth was widespread across services and manufacturing, which is good news for Ms Reeves.

This week is mainly about corporate earnings; however, signs that the US GDP was slowing in the first quarter will be further tested this week, as updates to industrial production and retail sales for March will provide further key insights as to the strength or otherwise of the US economy. It’s fair to say that the implications of Trump’s actions will only become evident in the coming months’ data. The ECB and the Bank of Canada meet this week; both are expected to cut interest rates in the face of the current economic uncertainty.

We will get a selection of companies from all industries this week, more banks report, most notably Goldman Sachs later today, then Johnson and Johnson on Tuesday, Wednesday semiconductor company ASML report and on Thursday the noteworthy ones will be AMEX and United Health. We get a couple of household names this week in the UK as we get earnings from Tesco and Sainsbury.

With all the uncertainty around US policy at present, earnings will be of interest, but even more so than usual, the outlook statements from the boards will be of greater interest, as will whether companies are prepared to give some future guidance on the outlook for their year ahead.

As I said, markets will open again in a positive mood today. Where fools rush in, angels fear to tread comes to mind, as there remains a lot of uncertainty out there. Rallies like these in bear markets are not unheard of, but who knows.