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 markets mostly held their ground on Monday, supported by China's latest stimulus measures, but Japan's Nikkei took a sharp dive, driven by concerns that the country’s new prime minister might favor normalizing interest rates.
The Nikkei fell 4.0%, as investors were uncertain about Prime Minister Shigeru Ishiba’s stance on the Bank of Japan’s (BOJ) monetary policy, despite his weekend comments suggesting that monetary policy "must remain accommodative" due to the current state of the economy. The uncertainty led to a brief recovery in the yen, with the dollar bouncing 0.5% to ¥142.85 after falling from ¥146.49 on Friday.
Meanwhile, China's central bank announced plans to lower mortgage rates on existing home loans by 50 basis points on average by the end of October. This comes as part of Beijing's largest stimulus package since the pandemic, aimed at tackling deflation risks and reviving the economy. Christian Keller, head of economic research at Barclays, noted that this indicates the Chinese government is becoming more serious about addressing the economic downturn.
On Wall Street, markets continued their strong performance after a favorable core US inflation reading on Friday, with futures indicating a 53% chance of a 50-basis-point rate cut by the Federal Reserve in November. S&P 500 futures rose 0.1%, and Nasdaq futures added 0.2%, signaling continued optimism as the S&P 500 is up 20% year-to-date, on track for its strongest January-September performance since 1997.
In commodities, gold reached record highs at $2,685 an ounce, buoyed by a weaker dollar and lower bond yields, while oil prices remained volatile due to concerns over increased supply from Saudi Arabia amid Middle East tensions.
Overall, while China's stimulus measures provided some stability across Asia, concerns over Japan's monetary policy and US rate cuts continue to drive market uncertainty.
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