Markets Stabilise as Policy Risks Recede
Financial markets are overcoming post-traumatic stress syndrome three days after Donald Trump started—and then temporarily paused—a potentially-catastrophic trade war with Canada and Mexico. Benchmark ten-year Treasury yields are inching lower and major equity bourses are headed for a stronger open after Treasury Secretary Scott Bessent called tariffs a “means to an end,” and said the new administration is focused on bringing down interest rates. The dollar is holding firm against its rivals. The number of Americans submitting initial applications for unemployment benefits rose incrementally to 219,000 in the week ended February 1, and continuing claims fell slightly in the prior...