January was kind to the major asset classes, marking a strong rebound from a rough month in December. Across-the-board gains last month suggest the year is on a positive trajectory for markets. But the good news became irrelevant in a heartbeat after President Trump announced sweeping tariffs on Canada, Mexico and China – news that threatens to lift inflation, slow growth, upend the global trading system and roil markets.
Daily Archives: February 3, 2025
Macro Briefing: 03 February 2025
Canada and Mexico vow to retaliate after Trump imposes sweeping tariffs on both countries. The White House also announced higher tariffs on China. The tariffs are expected to lift inflation and slow growth in the US and elsewhere. “There was some optimism in the [US Treasury] market that [tariff threats] were just for negotiation, but the market may have underestimated the determination of the Trump administration,” says Jason Lui, head of Asia-Pacific equity and derivative strategy at BNP Paribas.
