City traders are bracing themselves for a turbulent day ahead, as metal prices have taken a hit due to President Trump’s 10% tariff on imports from China. This has resulted in a decline in benchmark copper, aluminium, zinc, lead, tin, and nickel prices. The Bank of England is expected to cut interest rates several times this year, with 80 basis points of cuts priced in by the end of the year.
Deutsche Bank predicts a “manic Monday” in the markets following Trump’s tariff announcements over the weekend. Canada is responding with retaliatory tariffs on US products, and the Australian trading day closed with significant losses in both the Australian dollar and the benchmark ASX200.
Japanese and South Korean automakers and their suppliers have seen sharp declines in shares, reflecting concerns over Trump’s tariffs on Mexico, Canada, and China. Trump has also threatened to impose tariffs on the EU, although he has left the possibility of a deal with the UK open.
In response to Trump’s tariffs, China has taken a somewhat muted approach, planning to restore the “phase one” trade deal signed in 2020. Bloomberg characterizes the trade tensions as the most extensive act of protectionism by a US president in almost a century. Overall, global markets are struggling as investors grapple with the potential impact of increased tariffs on the economy.
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