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04 Mar 2025

EU on the defensive

• EU spending. Signals about more EU defence spending boosted the EUR. This has weighed on the USD & indirectly given the AUD some support.• Tariffs. US tariffs on imports from Canada, Mexico, & China kicked off. China & Canada announced retaliatory measures. Pres. Trump speaks today.• AU data. Q4 GDP due today. Partial indicators suggest growth momentum improved. RBA easing cycle to be slow & limited. China’s NPC also starts. Global Trends Geopolitical developments continue to push and pull markets. Global equity market losses extended overnight, with larger falls coming through in Europe compared to the US (EuroStoxx600 -2.1%...

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