Ipek Ozkardeskaya
Swissquote Bank Ltd
American and Canadian officials have spent the last few hours imposing tariffs on each other—only to roll them back —adding to the absurdity of the tariff situation. The problem is that this tariff charade has real-time consequences and that’s weighing on investor sentiment and pressuring market valuations.
Market volatility is rising as visibility becomes cloudier by the day, any market rebound may not be viable unless there is a form of stability in the White House – but that doesn’t seem to be on the menu du jour.
The US will update its inflation numbers today and tomorrow, and the data is important. A set of inflation numbers in line with expectations, or ideally softer-than-expected, won’t guarantee that inflation will remain under control but will give a bigger margin to the Federal Reserve (Fed) to act if necessary. A set of inflation numbers above expectations, on the other hand, would be the sour cherry on top of an already staling cake.
Across the Atlantic, yesterday saw the selloff in the Stoxx 600 index accelerate. The initial sugar high due to massive spending plans is now replaced by negotiations across the political spectrum as the parties involved are trying to get a bigger part of the cake for themselves... But in fine, security comes first.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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