Markets this year – and newsflow in general – seem to be rolling from one mega theme to another at breakneck speed. As DB’s Jim Reid described it, by mid-January, the UK was in the crosshairs of investors as global yields spiked. A week later, Deep Seek created temporary panic in the tech sector. Then yesterday saw another huge market swing, especially in Mexican and Canadian assets, as the “shock” weekend tariffs were delayed by a month.
Sure, trade will remain the short-term focus, but don’t forget about tech. Alphabet reported tonight and tumbled more than 8% after it missed on revenue and cloud, with Amazon now on deck for Thursday. Note that yesterday Nvidia fell below last Monday’s levels when they fell -16.97% in a day, thus wiping out the subsequent bounce. It’s now down -22% from its all-time high in early January and at levels it first hit in June last year, pointing to a loss of momentum. So keep an eye on tech as the trade war heats up.
That said, the trade topic continues to be front and center and US tariffs of 10% on all Chinese goods went into effect this morning, which were met in turn with retaliation from China. They imposed 10-15% tariffs on a combination of energy, agricultural goods, and auto vehicles from the US, a response which was largely viewed by the market as tame even if this is just the first exchange in the latest trade war.
Loading…
Read the full article here
