US equity markets tumbled, as fears of a global trade war began to materialise. Trump confirmed that the one-month deferment of tariffs in Mexico, Canada and China, would be over next week and tariffs would be implemented. Trump also confirmed, the new reciprocal tariffs would come into play, globally. The looming global trade war is sending jitters through equity markets, while fears over the re-emergence of inflation in the US and Europe, is also becoming a reality. German Q4 GDP growth data contracted a further 0.2%, confirming a deep and extended recession. The hopes of a change in direction under the new Government are minimal, as the coalition requires the previous Government coalition, as participants. The EUR rose to 1.0500, while the GBP traded around 1.2650, searching for direction.Commodity currencies drifted lower, with the AUD falling below 0.6350, while the NZD headed back towards 0.5700. Australian markets will be watching the latest CPI number, set to be released today, hoping inflation will not spike following the recent long-awaited rate cut.
