Ukraine deal hopes continue to lift the Dax and others, while US stocks have shrugged off yet more inflation news thanks to signs of a delay on tariffs, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Tariff delay gives stocks a boost
Tariffs and inflation remain the only two themes that investors care about. Over the past 24 hours, the latter of those narratives seems to have lost its power. Despite stronger CPI and PPI readings, stocks have avoided a selloff, with US markets demonstrating remarkable resilience. Trump’s announcement of more tariffs failed to have much of an impact either, since they are delayed until the beginning of April. Investors have been strengthened in their belief that the tough talk on this front is more of a negotiating tactic.
FTSE 100 stumbles
Poorly-received figures from BAT, Unilever and Barclays have meant that the FTSE 100 couldn’t hold the fresh record set in opening trading. Its weakness comes as a contrast to more strength in Europe. While still cheap, the prospect of a Ukraine deal seems to have bolstered the attraction of the region to investors, though the initial pop may well be a fade, given that even the start of negotiations may be some way off.
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