US inflation surprised to the downside [Video]
|The tariff hell broke lose yesterday after the US imposed 25% tariffs on all steel and aluminium imports triggering a swift response from the EU and Canada. The EU announced tariffs on around EUR 26bn worth of American goods, while Canadians slapped tariffs on CAD 30bn worth of US products. Voila, happy Thursday. Let’s see who blinks first.
Happily though, the US inflation ease more than expected in February on both monthly and annual basis. The latter somehow improved mood across risk assets, but enthusiasm is vulnerable in the fact of worsening global trade headlines that weigh on the US dollar, back gains in European and UK markets and amplifies the rotation trade. This being said, the tariffs on metals could leave the FTSE on the backfoot compared to the European peers, as the relative growth expectations between the EU and the UK favour the first, unless the UK inks a trade agreement with the US.
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