The Asian markets mixed on Tuesday. Traders are nervous about Donald Trump’s next move, warning of upcoming measures after approving a 25% tariff for steel and aluminum imports.
The president has responded to his campaign pledge to resume his hardball trade diplomacy to elicit concessions on a variety of issues, including commercial, immigration, and drug trafficking.
Global stocks recovered on Monday, but Asian markets struggled to maintain momentum after a day, Hong Kong flew between profits and losses, while Shanghai and Singapore fell. Markets in Seoul, Sydney and Taipei.
The uncertainty fuelled by Trump’s move has pushed safe gold to highs. On Monday, it went above $2,900 for the first time. Profits extended on Tuesday, reaching a new peak of over $2,938.
“This is still a very early age,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. “The market is not really in the direction for now, it’s a bit of a ticking.”
Stocks have been postponed since Trump took office — London and Frankfurt hit record highs on Monday — analysts say the measure has been less severe than fears so far.
Still, attention is looming as the dealer braces them to decorate for their next announcement from the White House.
Also, Chalchanana, chief investment strategist at Saxo Market, said: “These expanding trade measures beyond previous threats to Canada, Mexico and China have led to potential new import restrictions and retaliation, signaling more volatility for investors.
“Taxes are used not only as import taxes, but also as tools for national security, economic leverage and revenue generation, indicating a shift towards long-term economic policy rather than short-term trade disputes.”
Trump’s tariffs, along with tax cuts and deregulation, fear rekindling inflation and forcing the Federal Reserve to continue to raise interest rates.
This week’s measurements on consumer and producer price indexes provide a new snapshot of inflation, but Federal Reserve boss Jerome Powell is planning to give a deposit to U.S. lawmakers.
Both have been collaborated on ideas about bank fee planning, with forecasts of up to two cuts this year.
Agence France-Presse and Reuters contributed to this report
