Trump takes investors on a roller-coaster ride [Video]
|Yesterday offered a moment of relief for some investors amid the Trump euphoria sweeping through the markets. The nomination of Scott Bessent for Treasury Secretary resonated well across investment communities as the man – who runs a macro hedge fund and backs Trump’s tariffs and tax cuts – is seen a ‘measured choice’ for the economy and financial markets, as he would tame spending and adopt a ‘gradual’ approach to imposing tariffs.
But, wait. Investors didn’t have time to fully enjoy the news as Trump said that the US will impose extra 10% tariffs on Chinese goods and 25% levies on all products from Mexico and Canada. Mood in Asia was less cheery. The Mexican peso took a hit, and the USDCAD shortly rallied to 1.4180, hit by the falling oil prices as well, and traded at a level last seen in April 2020.
Elsewhere, US crude slipped below the $70pb level on rising hope of a cease-fire between Israel and Hezbollah, but nat gas futures remain under the positive pressure of tense setup with Russia.
Today, investors will lean on the FOMC minutes to find any hints of what the Federal Reserve (Fed) could do next.
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