Financial markets are back in risk-on mode after US President Donald Trump appeared to suggest that he could avoid putting tariffs on Chinese imports, backing off a campaign pledge to hit the country with a 60-percent levy. In a previously-recorded interview with Fox News that aired in the United States last night, Trump said “We have one very big power over China, and that’s tariffs, and they don’t...

• Trump talk. More comments from US President Trump overnight, but market reaction was relatively muted. Equities rose, while oil & the USD eased.• AUD & NZD. The USD pull-back is supporting AUD & NZD. Both are near the top of their respective 1-month ranges. AU CPI due next week.• BoJ hike? BoJ meets today. Another hike expected. We think the BoJ is ‘behind the curve’. Higher...

Financial markets are enjoying a period of placidity amid a relative lack of new headline risks related to the incoming administration’s trade, immigration, and fiscal policy plans. The global borrowing cost benchmark—the ten-year US Treasury yield—is holding near 4.62 percent, down from last week’s flirtation with the 4.8-percent threshold, equity futures are inching higher, and the dollar is eking...

• Trump vol. Markets were swung around by tariff news on Pres. Trump’s first day in office. But on net, equities rose while bond yields & the USD declined.• Delayed not derailed. Wide ranging reviews into US trade were announced. Findings due by 1 April. US trade tariffs still in the pipeline.• AUD & NZD. Softer USD has supported AUD & NZD. NZ headline CPI also a touch firmer than...