Markets Stabilise on Tariff Hopes
Some semblance of calm is returning to financial markets this morning after US Commerce Secretary Howard Lutnick suggested that the administration could agree to relax tariffs on Canada and Mexico by this afternoon. Equity indices plunged, Treasury yields tumbled, and risk-sensitive currencies sold off during yesterday’s session as investors expressed concern over the growth-negative aspects of the Trump administration’s tariff measures, but reversed higher when Lutnick’s interview with Fox News aired after the North American close, and have added to their gains this morning on similar comments provided during an interview with Bloomberg. Currency traders remain on tenterhooks however, especially...