Trump's tariff plans cause volatility in global shares and U.S. Treasuries

From Investing.com: 2025-01-20 21:25:54

Global shares and U.S. Treasuries were volatile on Tuesday after Trump announced plans for trade tariffs on neighbouring countries. Markets were closed on Monday, so the impact of his inauguration was felt during Asian trade. Trump’s administration is considering imposing 25% tariffs on Mexico and Canada by Feb. 1.

The focus is on Trump’s plans for import tariffs and tax cuts, which could stoke inflation and boost the U.S. economy. U.S. stock futures reacted by reversing gains, with Nasdaq futures sliding 0.4%. EUROSTOXX 50 and Asian shares also fell.

MSCI’s Asia-Pacific shares ticked up 0.2%. Treasury yields moved lower with the benchmark falling four basis points to 4.5682%. The two-year Treasury yield stood at 4.2424%. The dollar recouped losses, leaving the euro lower at $1.0378.

Oil prices weakened after Trump’s plan to maximize U.S. oil and gas production. Brent crude futures ticked up 0.06% to $80.19 a barrel, while WTI crude sank 1.46% to $76.74. Gold gained 0.14% to $2,712.20 an ounce.



Read more at Investing.com: Shares and Treasuries choppy on Trump’s plans for tariffs By Reuters