(Bloomberg) — Global stocks traded in a tight range as investors searched for a clear direction amid lingering uncertainty about President Donald Trump’s upcoming tariffs. The pound weakened on an unexpected slowdown in UK inflation.
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European stocks and US equity futures were little changed. The 10-year Treasury yield edged up. Copper futures in New York surged to a record high as traders priced in the possibility of hefty import tariffs.
Meanwhile, the pound slipped 0.2% to about $1.29. Cooler UK inflation will strengthen the case for the Bank of England to cut interest rates. It’s also a boost to Chancellor of the Exchequer Rachel Reeves ahead of a key economic statement later today. She’s expected to cites global economic challenges as she slashes government spending by billions of pounds.
Back in the US, tariffs are still front and center. The Trump administration indicated earlier this month that the coming wave of US tariffs may be less expansive and more targeted than originally feared. Then on Tuesday, Trump said he didn’t want have too many exceptions, but he will “probably be more lenient than reciprocal, because if I was reciprocal, that would be that would be very tough for people.”
“Uncertainty on the tariff front remains ridiculously high, leaving it incredibly tough for businesses or consumers to plan more than about a day into the future, and still making it nigh-on impossible for market participants to price risk,” said Michael Brown, a strategist at Pepperstone.
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Trump is preparing a “Liberation Day” tariff announcement on April 2, unveiling so-called reciprocal tariffs he sees as retribution for levies and barriers from other countries, including longtime US allies. While the announcement would remain a very significant expansion of US tariffs, it’s shaping up as more focused than the sprawling, fully global effort Trump has otherwise mused about, officials familiar with the matter say.
US tariffs on copper imports could be coming within several weeks, months earlier than the deadline for a decision, according to people familiar with the matter.
Meanwhile in Asian markets, the Hang Seng Tech Index added 1.1% after falling to the brink of a correction the day before. Morgan Stanley strategists raised their 2025 year-end index targets for Chinese stocks. Similarly, strategists at Goldman Sachs expect more fundamental upside to the recent rally as more positive earnings revisions should be coming.
