RECAP
Yesterday’s trading session was marked by heightened volatility, driven by a wave of tariff-related developments. ECB President Christine Lagarde remarked on the situation, noting that Donald Trump’s actions are introducing a level of uncertainty unseen in recent times.
The session began with negative sentiment, as both the USD and equities weakened. However, US stocks found some relief later on, buoyed by Senate Democrat Chuck Schumer’s comments that his party would vote to avoid a government shutdown, providing a counter to a week of sharp declines. Additionally, news of a productive meeting between US and Canadian trade officials further lifted investor confidence, improving risk sentiment.
Meanwhile, the Euro weakened following comments from a German Green Party official, who highlighted a lack of progress in discussions surrounding the proposed €500m fiscal package.
In the UK, Sterling faced a rough start to the session after weaker-than-expected GDP data was released. Both Manufacturing and Industrial output showed unexpected declines, reflecting the ongoing struggles of the UK economy in the aftermath of Chancellor Rachel Reeves’ fiscally restrictive budget.
