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Dollar Strengthens, Asian Markets Decline Amid Trump’s Tariff Plans

tariffs on all steel and aluminum imports.
tariffs on all steel and aluminum imports.

Global stock markets showed mixed trends on Monday as investors reacted to President Donald Trump’s announcement of tariffs on all steel and aluminum imports.

Stock Market Performance:

Key Corporate Moves:

Shares of BP Plc surged 6.7% following reports that a leading activist investor had acquired a stake, aiming to drive higher profitability and operational efficiency.

Currency & Bond Market Reaction:

Trump’s Tariff Plan & Market Sentiment:

Analysts remain divided over the market impact of Trump’s tariffs. Mohit Kumar from Jefferies International noted, “Markets are becoming less reactive to Trump’s tariff announcements. We anticipate short-term volatility, but the long-term impact may not be as severe as feared. However, Europe could be the next target.”

US Market Outlook:

Despite last week’s downturn, some investors appear optimistic, interpreting Trump’s tariff stance as a negotiation strategy rather than a definitive policy shift. Phillip Wool, Head of Portfolio Management at Rayliant Global Advisors, commented, “US traders largely view Trump’s tariff threats as a bargaining tool, which is why the equity market’s reaction has been relatively muted.”

Federal Reserve & Economic Indicators:

Commodity Market Trends:

Key Market Events to Watch This Week:

China’s retaliatory tariffs on US imports come into effect – Monday
European Central Bank President Christine Lagarde testifies before the European Parliament – Monday
US Inflation Data (CPI) and Powell’s Fed Testimony to influence market direction

Conclusion:

Trump’s tariff announcement has sparked fresh concerns over global trade, impacting stock markets and commodity prices. However, analysts suggest that investors are increasingly viewing such moves as negotiation tactics rather than immediate threats. As key economic events unfold this week, markets are expected to remain volatile, with traders closely monitoring US inflation data, Federal Reserve signals, and potential international trade responses.

news source:- bloomberg

President Donald Trump suspends tariffs on Mexico for 1 month

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