Magna Financial Market Report – Wednesday 12th March 2025
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• Volatility from tariffs, ceasefire, and trade talks
• Inflation report ahead
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RECA
Markets experienced a volatile day yesterday, with sharp fluctuations in response to two key events. Early in US trading, news of Trump’s announcement of an additional 25% tariff on Canadian steel and aluminium imports sent the USD, bond yields, and equities plunging.
However, the mood shifted dramatically later in the day following reports of Ukraine’s willingness to accept a 30-day ceasefire, coupled with the US’s decision to avoid increasing tariffs on Canada and to engage in high-level trade talks on March 13.
This surge in optimism prompted a reversal in market sentiment, pushing risk assets higher and driving the US Dollar to its lowest point of the year. As the tariff tensions continue, the EU has now stated that it will implement countermeasures to the US steel and aluminium tariffs, signalling ongoing trade disputes.
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OUR SUMMARY
The market has been on a rollercoaster ride due to the fluctuating nature of Trump’s tariff plans, but today may bring a temporary break as focus shifts to broader economic factors.
Later today, the US will release inflation data for February, which is anticipated to show a slight decrease in prices. With the US interest rate meeting scheduled for next week, this report will be under intense scrutiny for any indications that inflation remains stubbornly high. Expectations are that the data could influence market sentiment and guide future policy decisions.
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HOW WE CAN HELP
Our team of currency experts are here to help you get more from your money when making international payments. We will work with you to understand your payment needs and offer specialised guidance on the best options available to you. Get in touch with Osman Hanif today on +44 (0) 20 3371 9200 or email osman@magnafinancial.com
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