Today’s Headlines:

• Trump temporarily pulls back on tariffs
• Market nerves settle—for the moment

Market Recap

Markets had a dramatic reaction to mixed signals from the Trump administration. On one hand, a 90-day pause, and a small 10% tariff rollback sparked investor optimism, leading to the biggest stock market rally since 2020. On the other hand, tensions with China escalated as tariffs were increased sharply to 125%, putting pressure on global trade sentiment.

This sudden shift caused the euro to weaken, helping lift the pound against it. Interestingly, even traditional "safe" currencies like the Japanese yen and Swiss franc were sold off, showing that investors were caught off guard. At the same time, expectations for future interest rate cuts were dialled back across markets, as traders recalibrated their outlooks based on the tariff news.

Today’s Outlook:

US Inflation Data in Focus Today

• Today's CPI report will be closely watched to see if early tariffs on Canada, Mexico, and China are starting to drive up consumer prices.

👉 Will prices at the store start reflecting trade tensions?

Too Soon to Tell?

• It's likely still early for the full impact of tariffs to show in the data, but any surprise jump in inflation could support recent hawkish statements from the Federal Reserve.

👉 Could a stronger inflation print push the Fed to hold off on rate cuts?

Fed Minutes Hint at Stagflation Worries

• Last night's Fed meeting minutes revealed concern about stagflation—a mix of slowing growth and rising prices.

👉 What would stagflation mean for your job security and borrowing costs?

Market Volatility Still in Play

• Some of the market moves following the Fed update have calmed slightly, but we're likely in for another choppy session.

👉 Are you prepared for more swings in your investments or savings?

10th April 2025



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