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.

John Hall • April 10, 2025

Market Calm or Just the Eye of the Storm?

After a dramatic U-turn from the Trump administration, global markets rallied on hopes of eased tariffs. But with tensions still high—especially with China—and inflation data due today, uncertainty is far from over.

💬 What do you think today’s CPI print means for future rate moves?
📉 Is this market rebound sustainable—or just a pause before the next wave?

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



This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information, or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result. Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.


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