Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
Asian stocks rose on Friday, poised for a strong end to August, while the US dollar faced its worst monthly performance in nine months amid expectations that the Federal Reserve (Fed) will cut interest rates next month. The upcoming release of the US core personal consumption expenditures (PCE) price index and eurozone inflation data are likely to provide further insights into the global rate outlook.
Key Takeaways:
Strong Performance of Asian Stocks: The MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.77%, aiming for a 2.3% gain for the month. Key markets like Taiwan's benchmark index and South Korea's Kospi also saw recoveries, up 0.44% and 0.7%, respectively, driven by stronger-than-expected US economic data that eased recession fears. Chinese stocks rallied, particularly property stocks, with the CSI 300 Real Estate Index surging over 8% on news that China may allow homeowners to refinance up to $5.4 trillion in mortgages to boost consumption.
Dollar Weakens Amid Fed Rate Cut Expectations: The US dollar slumped as markets priced in a potential 100 basis points of Fed rate cuts by the end of the year, with a 32.5% chance of a 50 basis point cut in September. The dollar is on track for its sharpest monthly decline since November. Against the yen, the dollar was set to lose more than 3% for the month, reflecting narrowing interest rate differentials between the US and Japan.
Global Market Reactions and Commodity Prices: US stock futures extended gains, with Nasdaq futures rising 0.36% and S&P futures up 0.2%. In Europe, FTSE futures gained 0.4%, while EUROSTOXX 50 futures dipped 0.22%. Oil prices edged slightly higher, with Brent crude futures rising to $80.18 per barrel. Spot gold fell 0.28% to $2,514.12 an ounce but remained set for a 2.6% monthly gain, buoyed by the prospect of Fed easing and a weaker dollar.
The market's focus remains on the pace and extent of rate cuts by the Fed and the European Central Bank (ECB) in the coming months, which will shape the trajectory of global markets and currencies.
Comments
Post a Comment