Headlines:
- The biggest winners and losers from the latest US tariffs shift
- US customs say will halt collection of IEEPA tariffs on 24 February
- US president Trump: The Supreme Court tariffs ruling has given me more power than before
- EU reportedly to press pause on US trade deal approval amid latest tariffs kerfuffle
- Is this finally the time for gold to reach new record highs after the tariffs ruling?
- US-Iran risk keeps oil prices underpinned; third round of talks on Thursday in focus
- BOE's Taylor: Become more reassured that we are proceeding towards inflation normalisation
- Lagarde reportedly receives six-figure BIS stipend despite ECB ban on third-party payments
- Germany February Ifo business climate index 88.6 vs 88.4 expected
- Italy January final CPI +1.0% vs +1.0% y/y prelim
Markets:
- Dollar recovers as traders continue to digest tariffs uncertainty
- JPY leads, AUD lags on the day
- European indices mixed, US futures lower as Trump threatens to use 'licenses' in place of tariffs
- DAX down 0.6%, S&P 500 futures down 0.5%
- Gold up 1.1% to $5,161, silver up 2.8% to $86.98
- US 10-year yields down 1.4 bps to 4.07%
- WTI crude oil up 0.6% to $66.67
- Bitcoin down 2.0% to $66,270
The session was one marked by caution as markets are still digesting what to make do of the US Supreme Court tariffs decision on Friday last week. With the Trump administration now needing to seize tariffs under the IEEPA, trade uncertainty remains heightened after having announced blanket 15% tariffs for 150 days under Section 122 of the Trade Act of 1974.
And late on in the session, Trump came out to threaten 'licenses' in place of tariffs to punish trade partners instead. Well, it remains to be seen how that will work out. However, we are seeing some modest market reactions in response.
The dollar held weaker throughout to start the day but is now recovering some ground. EUR/USD is flat at 1.1780 after hovering around 1.1810-30 earlier in the session. Meanwhile, USD/JPY may be down 0.1% to 154.90 currently but that is well off the lows for the day at 154.00 earlier.
Despite the dollar recovery, precious metals remain bid with gold up 1.1% to $5,161 currently. Meanwhile, silver is up nearly 3% to $86.98 as the erratic and uncertain trade policy approach by the US administration reinvigorates the precious metals trade.
As for risk sentiment, there were some tentative recovery signs early on but that has been dashed after Trump's latest threat.
S&P 500 futures are now down 0.5% after having recovered to be marginally down by 0.1% at one point during the session. In Europe, major indices are mostly lower amid a more mixed mood. The DAX is down 0.6% with CAC 40 down 0.2% on the day.
In other markets, 10-year Treasury yields are staying pressured and down 1.4 bps to 4.07% while Bitcoin is struggling after a plunge in Asia and is still down 2% to $66,270 currently.
