Weekly News: Futures, Tariffs, Oil, Gold
As investors gear up for a wild week, U.S. stock futures are down, putting on a pivotal week that will include high-stakes tariff announcements by President Donald Trump and key economic data releases. Concerns about Trump’s tariff policy and the potential economic implications are souring market sentiment.
Futures Down
Stock futures in the U.S. lost strength on Monday, presaging a nervous week start, presaging a nervous week start. Investors are preparing for a make-or-break week with a closely anticipated tariff announcement by President Trump, coupled with crucial economic releases.
Stock markets in the United States of America closed lower last week as worries grew about the impact of tariffs on growth and inflation. U.S. consumer expenditures in February showed weaker-than-forecast growth, while a gauge of underlying prices increased by the most in 13 months. A measure gauging 12-month consumer inflation expectations also rose to a near two-and-a-half-year high.
James Knightley, Chief International Economist for ING’s U.S., expressed concern about “hot inflation and slackening consumer spending.” He believes these issues will be compounded by President Trump’s hawkish moves on tariffs and government spending cuts. The threat of “stagflation” is growing, he said, that would limit the Federal Reserve’s room for further rate cuts.
Trump’s Proposed Tariff Threat Looms Over Horizon
Market participants are keenly watching April 2, when President Trump is to make an announcement about a new wave of tariffs that could disrupt established global trade trends. The action will further intensify the president’s effort to overhaul the U.S.’s trade policy.
Trump has also suggested that his “liberation day” remarks could also mean imposing tariffs on friends and adversaries alike. Trump is said to be considering an across-the-board tariff on all countries where America runs a trade deficit. His administration has already suggested new auto tariffs, which has raised concerns about potential car price increases in America.
Trump’s Frustration with Putin
In a sudden reversal, President Trump showed irritation at Russian President Vladimir Putin, calling him “pissed off” in reaction to Putin’s condemnation of Ukrainian President Volodymyr Zelenskiy. Trump has threatened to place 25% to 50% secondary tariffs on Russian oil purchasers if he believed Russia was blocking his efforts to broker peace in Ukraine. Gold Reaches Record High
Gold prices surged in early Asian trading on Monday, hitting a record high as investors fled to the safety of the metal amid rising fears about the economic impact of Trump’s tariffs. Gold prices rise as there are rising fears of an impending U.S. recession with Goldman Sachs now predicting a 35% chance of a downturn in the next year.
Goldman’s forecast also fueled gold’s advance, with investors more and more relying on the metal as a bet against uncertainty. Other metal markets broadly declined, with the U.S. dollar slipping, which drove bullion higher.
Oil Choppy
Oil prices got some relief on Monday, erasing earlier losses to trade higher. However, they are still going to close lower for the quarter, as fears keep mounting of the economic downturn that could be caused by the ongoing global trade tensions. Brent and WTI crude were poised to post their first quarterly loss in two quarters, despite posting three consecutive weeks of gains.
In the coming weeks, the Organization of the Petroleum Exporting Countries and Allies (OPEC+) will initiate its series of normal monthly increases in oil output, potentially having further influence on oil prices. The energy market’s future is unclear, as the deceleration in the world economy continues to bear down on demand.
This week promises to be a pivotal one for global markets, with President Trump’s tariff announcements and economic data releases expected to shape investor sentiment. With growing economic uncertainty, the traders need to stay flexible and keep modifying their strategy to match the rapidly evolving market. Join BullRush today to dominate the market!
