CHF

Financial markets this morning celebrated a temporary reprieve from President Trump’s trade war after the bipartisan US Court of International Trade ruled that he overstepped his authority in using emergency powers to impose tariffs – but the relief rally is fading in the face of data that suggests the economy is losing momentum. North American equity indices are still marching toward solid gains – partially supported by last night’s positive earnings release from artificial intelligence bellwether Nvidia Corp. – and implied volatility expectations are declining, but ten-year Treasury yields are falling, and the dollar is conceding territory as the session...

The dollar is strengthening, yields are edging lower, and North American equity markets are barrelling toward a second day of gains after the Trump administration appeared to soften its stance on several policy fronts. Risk sentiment improved early in yesterday’s session on signs that the administration intends to retreat from its maximalist positions on China. In a closed-door meeting with investors, Treasury Secretary Scott Bessent reportedly said “No one thinks the current status quo is sustainable at 145 and 125 percent” tariffs, “So, I would posit that over the very near future, there will be a de-escalation. And I think...