Trump pauses tariffs but markets are still wary

MT HANNACH
7 Min Read
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Cars are queuing to cross the United States from Canada, on the border between the two countries, in Surrey, British Columbia, Canada on February 3, 2025.

Chris Helgren | Reuters

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The prices do not occur immediately – at least for Mexico and Canada. In what seemed to be another successful agreement negotiated by American president Donald Trump, the two countries agreed to strengthen their border protection, leading to a break in the prices.

The markets pushed a sigh of relief and made strong reversals to the news. But persistent agitation on long -term uncertainty prevented actions from having a positive day. Trump comments on Sunday, according to which he agreed with the decision of the American federal reserve to maintain unchanged interest rates could also have watered down the expectations of (also eccentric) investors for lower rates.

Alphabet’s income, releasing later in the day, could draw the most attention, but in the current context dominated by Trump, it would be interesting to see how Toyota Motor And FordWho report income on Wednesday, speak – or around – how the prices will affect their businesses.

What you need to know today

Trump prices pending
US President Donald Trump accepted on Monday Brew on Canada Tips For at least 30 days, Prime Minister Justin Trudeau said in a position on the announcement of X. Trudeau came a few hours after the president of Mexico, Claudia Sheinbaum, revealed that Trump was retain the prices on its exports for a month. The delay comes after the two countries have agreed to take action to prevent fentanyl traffic in the United States

The markets come back on stage but still in the red
All the main American indexes finished on Monday in the red. THE Industrial average Dow Jones Recovered 0.28%, fixing losses of 1.5% earlier in the day, after the news of the price break broke out. THE S&P 500 slipped 0.76% and the Nasdaq Composite sprawled 1.2%. Regional Europe Stoxx 600 index dropped by 0.87%. Automobile stocks such as Volkswagen,, Porsche And Bmw were Among the biggest losersAlthough they gave each other more steep falls earlier.

American sovereign heritage funds
Trump signed an executive decree on Monday that describes the plans for A sovereign heritage fund managed by the American government. Although it aims to develop infrastructure such as airports and highways, it could also help the United States extend its influence in areas such as Panama and Greenland and even be used to buy Tiktok.

`Good thing to do ” – Regular prices
In an apparent change of mind, Trump said that the American federal reserve with interest rates between 4.25% and 4.5% at its January meeting “It was the right thing to do.“The declaration was in striking contrast to a delivered Trump Speaking at a distance to the World Economic Forum in Davos, Switzerland. During an appearance of January 23, Trump said that he “demanded that interest rates drop immediately”.

Investors pour out in Palantir
Palant’s actions jumped up to 24% of prolonged exchanges on Monday after the software company has published profits and fourth quarter revenues that beat estimates. The quarterly income increased by 36% compared to the previous year to $ 828 million. For the full year, sales increased by 29%. With the rhythm of the fourth quarter, Palantir has offered advice better than expected for the full year. CEO Alex Karp has allocated a large part of the growth of the company to its use of artificial intelligence.

[PRO] A Trump price model?
The markets may have resumed after the news announced that Trump is holding the prices for the moment, but they have closed the day anyway. Analysts are also cautious about how Trump will deploy the prices in the future – even if they are a “model” for transactions, other countries could push more force and Stimulate the big movements in stocks in both directions.

And finally …

Recently launched Amazon Artificial Intelligence processors which aim to fight against Nvidia and the chips made by other hyperscalers such as Microsoft and Google are presented in an Amazon laboratory in Austin, Texas, United States, July 19, 2024.

Sergio Flores | Reuters

While the markets are reduced for Trump’s prices, these global sectors accumulate for a difficult race

If Trump’s prices take place after their 30 -day break losses, analysts expect a peak in short -term oil prices, higher prices for American consumers and higher American interest rates, With a stronger US dollar accordingly. Globally, economic growth will be slower in the short and medium term, especially in countries with large manufacturing sectors. Automobiles, flea companies, consumer goods and Chinese electronic costs are among the sectors that will face the greatest impact.

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