"LIBERATION DAY"
Last week, global equities fell ahead of expected US tariff announcements on so-called "Liberation Day" on Wednesday and resultant growth concerns.
This week, aside from tariff news on Wednesday, US labour-market data in relation to job openings and labour turnover (tomorrow) and the employment report (Friday) could be of note to gauge any impact of the Trump administration's policies.
US PMIs - a business survey - for March indicated that services continued to expand while manufacturing suggested deteriorating conditions, with companies citing increased input costs due to "the impact of tariff policies."
Eurozone composite PMI remained in expansionary territory (above 50) and that for manufacturing rose to 50.7, the highest in over three years, amid improved output in Germany and France.
President Trump announced a 25% tariff on auto imports into the US to be implemented from Wednesday. The Conference Board index of consumer confidence fell by more than forecast in March due to concerns about “the impact of tariffs” while inflation expectations rose to the highest level in nearly two years.
Global equities declined last week due to growing worries around the impact of tariffs and a potential trade war, with the S&P 500 falling by 1.5% and the EuroStoxx 600 down by 1.4%.
Bond yields were mixed last week amid ongoing uncertainty around the impact of tariffs, which could slow growth and accelerate inflation, making central bank policy paths less clear. The yield for German 10-year bunds declined (bond prices rise as yields fall) by 2bps to 2.74% while the equivalent US Treasury was up by 1bp to 4.26%.
- Tue 1st US - Job Openings and Labour Turnover Survey (JOLTS), ISM manufacturing • Eurozone - Consumer-price inflation, unemployment rate
- Wed 2nd US - Factory orders
- Thu 3rd US - Initial jobless claims, ISM services
- Fri 4th US - Employment report, Fed Chair Powell speaks • Germany - Manufacturing orders
This is intended as a general review of investment market conditions. It does not constitute investment advice and has not been prepared based on the financial needs or objectives of any particular person.