Steel and Aluminum Tariffs Drive Dollar Higher, Mixed Equity Picture
Headline: President Trump's Pledge to Impose Tariffs on Steel and Aluminum Boosts Dollar, Raises Trade Tensions
Key Points:
* Asian stock markets witness mixed performance, with a benchmark dropping while US and European stock index futures gain.
* The dollar index rises by 0.2% amid speculation that tariffs could fuel inflation and limit the Federal Reserve's interest rate reduction options.
* Trump's announcement of a 25% levy on steel and aluminum adds to market volatility ahead of Fed Chair Jerome Powell's testimony and potential reciprocal tariffs.
* US stock futures indicate some buyers may seek re-entry after the S&P 500's 1% decline on Friday.
* The Hang Seng Tech Index in Hong Kong surges to its highest intraday level since October, propelled by optimism in the artificial intelligence sector.
* Gold prices climb towards a record high as investors seek safe-haven assets.
Additional Details:
* Bloomberg Dollar Spot Index increases by 0.2%, while the euro and Japanese yen decline.
* 10-year Treasury yields edge lower.
* Cryptocurrencies Bitcoin and Ether rise.
* South Africa's rand falls after the US suspends aid due to alleged rights violations and genocide accusations.
Upcoming Events:
* China implements retaliatory tariffs on US goods on Monday.
* ECB President Christine Lagarde testifies to the European Parliament on Monday.
* Fed Chairman Jerome Powell delivers monetary policy testimony to Senate on Tuesday and House Financial Services panel on Wednesday.
* India releases CPI and industrial production data on Wednesday.
* Eurozone GDP data released on Friday.