Ipek Ozkardeskaya
Swissquote Bank Ltd
Trump’s tariff announcement was worse than expected. The market reaction to the tariff announcement is strongly negative. The pricing in currency markets suggests rising retaliation bets to the US tariffs. The US dollar eased to the lowest level since Trump entered the White House, the lowest levels this year and the lowest levels since mid October. The tariff announcement sent Cable directly up above the 1.30 psychological mark. The EURUSD trades above the 1.09 level while the USDJPY tanked to 147.
Inside equities, the afterhours trading looked like a bunch of US companies announced disappointing earnings all at once. Apple – that’s still got great exposure to China – tanked more than 7% in the afterhours, Nike also fell by a similar amount, while Nvidia lost more than 5% and Tesla tanked more than 8%.
The futures are deeply in the red with the S&P500 futures pointing at almost 3% losses at the time of writing, while Nasdaq futures point at losses more than 3%. Europe opens down.
The next hours and days will be shaped by the world’s reaction - likely retaliation - and how much effort and money countries will deploy to fight back.
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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