Flip flop policies play against US, favour global peers [Video]
![Flip flop policies play against US, favour global peers [Video]](https://editorial.fxsstatic.com/images/i/EURUSD-bearish-object_XtraLarge.png)
Donald Trump paused tariffs imposed on Canadian and Mexican imports two days after imposing 25% levies on its biggest trade partners’ products amid sanguine market reaction and resistance from trade partners. Beyond the politicians who refused to surrender, Walmart’s Chinese suppliers reportedly refused to take on a 10% price cut on their products while Europe is looking to replace Elon Musk’s Starlink in Ukraine by a European alternative, the French satellite operator Eutelsat, to make sure not to give the communication capabilities into the hands of a no-ally-anymore. Eutelsat’s stock price gained more than 500% in just a week. The European defense stocks consolidate gains near ATH levels as the European countries agreed to spend EUR 800bn for strengthening their defense and security. On top, the European Central Bank (ECB) delivered another 25bp cut at yesterday’s meeting, as expected, but hinted that the rate cutting cycle could gently be coming to an end after six rate cuts as inflation is approaching their 2% policy target. The EURUSD is on a bullish trend while selloff in the US barely affects appetite in Europe.
Anyway, this morning, the market mood is a little bit better for the US equity futures. Broadcom jumped nearly 13% in the afterhours trading after announcing better-than-expected quarterly results and after giving a strong forecast. All eyes are on the US jobs data due later today.
Author
Ipek Ozkardeskaya
Swissquote Bank Ltd
Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.
