Global stock markets remained largely unaffected by looming tariff concerns on Monday, as 25% levies on imports of steel and aluminum, including finished products, took effect late Monday night. Despite initial stability, futures markets began to decline post-implementation, signaling a cautious tone across financial markets.
The S&P 500 and Eurostoxx 50 indices are anticipated to open lower, reflecting the underlying caution impacting investors. In a related development, Fed Chair Powell's hawkish remarks overnight rekindled demand for the US dollar, further influencing market dynamics. Simultaneously, the core Consumer Price Index (CPI) is projected to stay above the Federal Reserve’s target at 3.1% year-on-year, adding another layer of complexity to the economic landscape.
Gold prices experienced a downturn for the second consecutive day as the US dollar saw a modest increase. Conversely, the EUR/USD currency pair maintained stability above 1.0350 during European trading hours on Wednesday. Trade war anxieties are expected to limit any significant corrective slide for the safe-haven XAU/USD pair.
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