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Rolling coverage of the latest economic and financial newsTrump prepares to unveil reciprocal tariffs as markets brace amid trade war fearsA big concern for investors is that the US tariffs will be met by retaliatory moves from trading partners, who will announce their own levies on US goods in response.That could lead to a further round of escalation as the US seek to respond, warns Jim Reid, market strategist at Deutsche Bank, explaining:So that’s meant inflation expectations have continued to rise, with the 1yr US inflation swap (+13.3bps) yesterday hitting another two-year high of 3.25%. Other traditional inflation hedges have done well on the back of that, with gold prices (+1.24%) moving up to another record high.In terms of the upcoming tariff announcement, we still don’t know which countries they’ll be imposed on and what rate. It’s fair to say that the administration might not have the final plan ready as yetYesterday, White House Press Secretary Leavitt said a planned Rose Garden announcement would feature “country-based” tariffs, with further sectoral duties to come later, while last night Treasury Secretary Bessent said on Fox News that Trump will announce the reciprocal tariffs at 3pm EST on Wednesday.“The ongoing uncertainty regarding tariffs has affected equity markets and brought another round of safe-haven buying into the gold market.“There are certain technical areas of resistance along the way that could cause a little profit-taking or pullback. But the ongoing bullish trend remains in place. The fundamental underpinnings remain in place.” Continue reading…
Rolling coverage of the latest economic and financial news
A big concern for investors is that the US tariffs will be met by retaliatory moves from trading partners, who will announce their own levies on US goods in response.
That could lead to a further round of escalation as the US seek to respond, warns Jim Reid, market strategist at Deutsche Bank, explaining:
So that’s meant inflation expectations have continued to rise, with the 1yr US inflation swap (+13.3bps) yesterday hitting another two-year high of 3.25%. Other traditional inflation hedges have done well on the back of that, with gold prices (+1.24%) moving up to another record high.
In terms of the upcoming tariff announcement, we still don’t know which countries they’ll be imposed on and what rate. It’s fair to say that the administration might not have the final plan ready as yet
Yesterday, White House Press Secretary Leavitt said a planned Rose Garden announcement would feature “country-based” tariffs, with further sectoral duties to come later, while last night Treasury Secretary Bessent said on Fox News that Trump will announce the reciprocal tariffs at 3pm EST on Wednesday.
“The ongoing uncertainty regarding tariffs has affected equity markets and brought another round of safe-haven buying into the gold market.
“There are certain technical areas of resistance along the way that could cause a little profit-taking or pullback. But the ongoing bullish trend remains in place. The fundamental underpinnings remain in place.”
