Global equity market rallies stalled overnight, as they digest the consequences of Trumps economic policies, on global economies. Tariffs are coming for Europe and China, which will not assist on trade, while ‘for how long they will remain’, is the big question. Perhaps trade deals will be done before the imposition of tariffs? ‘Free-Trade Agreements’ have been anything but free and fair, so there will be a big adjustment. US PPI was sharply higher, reinforcing the spike in inflation, as set out in the bump in the CPI yesterday. European and US inflation has reemerged, and Central Banks will be watching developments, with concern. The US Dollar continues to surge, with the EUR traded down to as low as 1.0500, while the GBP dipped down to 1.2630.
The resurgent reserve has hit commodity currencies hard, with the AUD falling to 0.6450, while the NZD dropped to 0.5850. Australian Unemployment data was steady, at 4.1%, not moving markets. A close watch on GDP growth in Japan and the UK will divert markets, while Chinese Industrial Production data will also be of interest.
