Wall St Futures Slip, Dollar climbs to tariff threat
Wayne Cole
SYDNEY (Reuters) – Wall Street share futures rose sharply on Monday after US President Donald Trump repeated warnings of impending tariffs, including steel and aluminum.
Speaking to Air Force 1 reporters, Trump announced 25% tariffs on all steel and aluminum imports into the United States on Monday, and said he would reveal other mutual tariffs on Tuesday or Wednesday. .
Comments are shortly after German Prime Minister Olaf Scholz said that if the European Union imposes tariffs on European goods and highlights the risk of escalating a trade war, it is ready to respond “within an hour.” I’ve come to.
China’s retaliatory tariffs on some US exports are expected to take effect Monday, with no signs of progress yet between Beijing and Washington.
Analysts assume that the currency of the country Trump targeted will tend to defy the dollar to compensate for some of the tax.
Tariffs could put upward pressure on US inflation and could further limit the amount of room for the Federal Reserve to ease policy.
The market was expanding its expected rate cut, which has returned from around 42 basis points to just 36 basis points this year, following Friday’s bright pay report.
Federal Reserve Chairman Jerome Powell is scheduled to appear before the House on Tuesday and Wednesday, and the impact of tariffs on policy should certainly be a hot button issue.
His Wednesday testimony may also suggest early pressure given the anecdote evidence of companies raising prices in anticipation of taxes, following January’s consumer price data.
A consumer survey on Friday showed that long-term outlook remained stable, but inflation expectations for the next year rose sharply.
Dollars at Yield
Investors responded by pushing the dollar even more, with the index rising 0.3% at 108.38. The euro fell 0.3% to $1.0295, but the Australian dollar, exposed to trade, fell 0.5% to $0.6245. (USD/)
The dollar is stable at 151.32 yen, and it is estimated that the Bank of Japan will raise interest rates in the coming months.
Nikkei Futures was trading at 38,415 since Friday’s cash closure of 38,787.
S&P 500 futures slipped 0.2%, while Nasdaq futures fell 0.3%.
The stock was also caught up in by several mixed earnings numbers last week, but overall earnings growth per share is running above the early forecast of 8%.
“Taxes are a key downside to EPS forecasts for 2025,” a Goldman Sachs analyst warned.