How Europe deals with Trump tariffs will be the market’s next test
The White House’s ‘liberation day’ is turning into a week of value destruction – and all eyes are on Europe as it draws up a hit list of US products to levy.
It’s European policymakers and their strategic tariff manoeuvrings that pose the next big test for roiled financial markets, as US President Donald Trump’s “liberation day” morphs into value destruction week.
Fear typically breeds more fear and that’s what is occurring. There is certainly more pain ahead – which could extend for weeks – as shockwaves reverberate through financial markets. In our timezone, Japan’s main index the Nikkei 225 even tumbled into bear market territory on Monday, as it fell more than 20 per cent from a December peak.
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Joyce Moullakis writes on banking and finance, specialising in investment banking, private equity, and financial services. Connect with Joyce on Twitter. Email Joyce at joyce.moullakis@nine.com.au
