Trump surprised markets with a 90-day pause in reciprocal tariffs for most trading partners. This provided a boost to risk assets, including commodities. However, there’s still plenty of uncertainty as the US again increased tariffs on China.
China’s stimulus package may provide temporary relief, but a deeper issue remains: China’s economy heavily relies on exporting goods to the United States.
US markets closed lower on 04/08 amid trade war fears and weak economic data. Asian markets followed suit with sharp declines, while European shares also fell as recession concerns grew. Oil prices dropped to multi-year lows, and the US dollar slumped as investors anticipate deeper rate cuts by the Federal Reserve.
Light Crude Oil (CL) has exhibited a downward trajectory since reaching its high on January 16, 2025, with indications suggesting further declines ahead.
WTI futures fell further on Monday to just above $60 per barrel, the lowest level since April 2021, as concerns that the escalating trade war could slow the global economy and weaken energy demand.
It's impossible to fathom what Trump expects from this process, as it won't be simply what he campaigned on. Old saying: 'fade Euphoria, and buy Despair'. Are we nearly there?
Bitcoin performed relatively well in comparison to the rest of the markets. Although it gave up quite a bit of its gains, Bitcoin returned to where it started for the week, which is something that you cannot say for most assets.
