10.02.25 - New tariffs

On Sunday evening US president Donald Trump announced additional 25% tariffs on all steel and aluminium imports into the US.

Markets: Strong gains in China, solid gains in Europe and US futures in plus after selloff on Friday. Only some bigger price moves in the metal sector. Gold with new all-time high above USD 2’900.

My View: While markets reacted heavily on the first tariffs announcement back in January, now they seem to ignore latest news regarding tariffs and the potential risk of a trade war. The question remains the same, what is next?

Almost no day without shifts in short-term sentiment between fear and greed. In such situations, it is crucial to maintain a steady stance and only make significant strategic adjustments if the market and overall risk sentiment undergo a fundamental shift. During such market swings, short-term opportunities may also arise. For this, markets have to be closely monitored.

The coming days, in the event of an announcement or development perceived as unfavorable by investors, overbought markets could face a correction as sentiment shifts and speculative positions would get unwinded.

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