Ipek Ozkardeskaya
Swissquote Bank Ltd
The tariff hell broke lose yesterday after the US imposed 25% tariffs on all steel and aluminium imports triggering a swift response from the EU and Canada. The EU announced tariffs on around EUR 26bn worth of American goods, while Canadians slapped tariffs on CAD 30bn worth of US products. Voila, happy Thursday. Let’s see who blinks first.
Happily though, the US inflation ease more than expected in February on both monthly and annual basis. The latter somehow improved mood across risk assets, but enthusiasm is vulnerable in the fact of worsening global trade headlines that weigh on the US dollar, back gains in European and UK markets and amplifies the rotation trade. This being said, the tariffs on metals could leave the FTSE on the backfoot compared to the European peers, as the relative growth expectations between the EU and the UK favour the first, unless the UK inks a trade agreement with the US.
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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