Tariffs weigh on equities, bond recovery continues
Tariffs are once again rocking the financial markets. Trump’s words about imminent tariffs on Canada and Mexico and rising tensions with China are holding back equity markets.
There are two interesting moves we are seeing on our intermarket dashboards. The first is the bond’s attempt to break through dynamic resistance. This attempt appears to be more decisive than in previous weeks. The second is the performance of the S&P500, which is touching the 50-day average and is struggling to recover from last week’s fall. This is coupled with a markedly less risk-on environment in recent days. Financial markets remain concerned about the potential impact of new tariffs, with the risk of a trade war that could dampen economic growth.
On the macroeconomic front, the day will be dominated by US house price data and CB data on US consumer confidence.
Our forecast analysis points to another grey day for the equity markets, while on the bond front the evidence points to a continuation of the decline in yields. For gold, the signs are buying but weak. Volatility remains low.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 25 February 2025 - 7:26 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.
