US President Donald Trump announced 25% tariffs on steel and aluminum imports, sparking global market uncertainty. China retaliated with its own tariffs, while European leaders prepared for a response. Analysts weigh the impact of such actions, citing potential economic instability.
Investors initially sold the Australian dollar and euro, but losses were later pared. Wall Street futures dipped early but rebounded to rise 0.3%. European futures followed suit, remaining relatively stable.
Some analysts believe Trump’s sensitivity to market movements may lead him to reverse course, while others suggest his confidence in his economic plans could boost him. However, such speculation raises concerns about potential defaults on US debt, which could trigger a global financial crisis.
The White House will face scrutiny from Fed Chair Jerome Powell during testimony before Congress this week, particularly after January consumer price data are released. The release of this data may prompt the Fed to take action.
Gold prices reached an all-time high as speculation surrounding Trump’s tariffs on metals grew. However, demand for physical gold has led to a supply crunch in some markets.
Key developments that could influence markets today include appearances by ECB leaders and investor confidence surveys.
Source: https://www.reuters.com/markets/europe/global-markets-view-europe-2025-02-10