Trump's tariff zig-zags unsettle investors

Briefly in today's #5in5withANZ podcast below

Trump’s vacillations on tariffs is unsettling US market and economic confidence, although some think a ‘Trump Put’ will limit any fall in stock prices. Markets now expect more than three Fed rate cuts in 2025. China’s deflation deepens in February.

5 things to know in 5 minutes

1. Global markets staggered to mixed finishes last week, punch drunk from Donald Trump’s to-ing and fro-ing on Tariffs. ANZ’s Head of G3 Economics Brian Martin explains how changing tariff policies day-in and day-out is affecting investor confidence.
2. All the tariff uncertainty is starting to affect sentiment in the US economy, and may soon affect employment, although it’s not showing much yet, says Brian.
3. ANZ Group Chief Economist Richard Yetsenga says some investors may think there’s a ‘Trump Put’ under stock prices, but tariffs will eventually hit valuations.
4. Fears about slower US growth in recent weeks have lifted market expectations of Federal Reserve rate cuts to over three this year from one, says Richard.
5. China’s consumer price index fell 0.7% in February from from a year ago, which was a deeper fall than expected, says ANZ Economist Vicky Xiao Zhou.

In our bonus deep dive interview

ANZ’s Head of G3 Economics Brian Martin takes a closer look at Germany’s plan to step off its ‘fiscal brake’.

Cheers,

Bernard

PS: Catch you tomorrow with detail on Australia’s infrastructure investment track with ANZ Senior Economist Adelaide Timbrell.