Markets will open this morning for the first time after Donald Trump unleashed 25% tariffs across the board on imports from Canada and Mexico on Sunday. Stocks, bond yields and non-US currencies are expected to slide as investors seek safe havens.
In our bonus deep dive interview, ANZ’s Head of G3 Economics Brian Martin analyses the detail of Trump’s historic actions and the implications for global trade, output and inflation.
5 things to know in 5 minutes:
Global markets will open this morning to a different type of global economy, potentially with slower economic growth outside of the United States, higher inflation both inside and out of the United States, and higher interest rates globally than would otherwise be the case, as ANZ’s Head of G3 Economics Brian Martin explains from London this morning.
Corporate profits and global equities are also expected to be under pressure, as is the US Federal Reserve, says Brian.
New Zealand consumer confidence fell in January in the ANZ Roy Morgan survey. ANZ NZ Economist Henry Russell points to a soft labour market.
India’s Federal Government published its 2025 Budget over the weekend, including a smaller deficit relative to the size of the economy, says ANZ Economist Dhiraj Nim.
India also unveiled a surprise income tax cut, says Dhiraj.
Cheers,
Bernard
PS: Catch you tomorrow with more on how global financial markets and America’s trading partners reacted to Donald Trump’s across-the-board tariffs.
