European markets recovered some of the previous day’s losses on equity markets, as they await ‘Liberation Day’. The incoming tariffs, if not ‘lenient’, will be a massive shock to global trade. Countries nervously await the imposition and if these tariffs are comprehensive and significant ‘cut-outs’ are not given, then there will be mayhem. Certain Countries and industries will likely receive preferential treatment, mitigating the initial threats of the impact of the actual tariffs. The US Manufacturing PMI was slightly stronger, while European numbers were weaker. European inflation data confirmed continued downside, falling to an EU low of 2.2%, allowing for some positives. The US Dollar remained steady, with the EUR dipping below 1.0800, while the GBP traded 1.2900.The RBA left interest rates unchanged, in line with pre-election protocols. This had little impact on the currency, with the AUD trading below 0.6300, while the NZD could not recover 0.5700. All eyes remain focused on the US and the details of the new tariff regime and ‘Liberation Day’.
