Donald Trump’s Tariffs Order Boosted Aussie

Market Reviews

Aussie and Kiwi have both significantly surged thanks to the fact that Australia was excluded from the steel and aluminum tariffs. Japanese Nikkei lifted 1.4%. Hong Kong HSI rose to 1.5%. DOW increased 1.77%. Japanese business sentiments dropped in the first quarter. Large all industry index reduced from 6.2 to 3.3. Large manufacturing index declined from 9.7 to 2.9. Large non-manufacturing index fell from 4.5 to 3.4.

This weekend, Cecilia Malmström (European Commissioner for Trade) and Robert Lighthizer (U.S. Trade Representative) discussed Donald Trump’s order. The sides didn’t reach any consensus. Cecilia Malmström only claimed the decision will harm the US-EU trade relationship. Later, the Commissioner said in her Twitter account: “As a close security and trade partner of the U.S., the EU must be excluded from the announced measures. No immediate clarity on the exact U.S. procedure for exemption however, so discussions will continue next week.” In response, the US President decided to attack the EU, which wasn’t a surprise. Trump stated: “the European Union, wonderful countries who treat the U.S. very badly on trade, are complaining about the tariffs on Steel & Aluminum. If they drop their horrific barriers and tariffs on U.S. products going in, we will likewise drop ours. Big Deficit. If not, we Tax Cars etc. FAIR!”

This week, Donald Trump and Kim Jong-un will meet to discuss the nuclear situation. US Consumer Price Index and retail sales release will be another anticipated event. Additionally, Swiss National Bank will have a meeting, where members are expected to announce the quarterly rate. Bank of Japan will publish its meeting protocol. China will present growth figures and New Zealand will feature Gross Domestic Product.