Tariff Shock

The long-anticipated tariff announcements have finally landed, and markets wasted no time in responding. Framed as the Trump administration’s first major shift in trade policy, the move aims to bring manufacturing back to the US, but not without ruffling feathers among key trading partners.

Market Volatility: A Time to Stay Focused

Given recent market movements, we want to provide some context on what's happening and answer some questions that you may have. 

While headlines may appear unsettling, it's essential to remain focused on broader market trends and opportunities.

Shifting Priorities

The optimism that followed Trump’s re-election has faded - at least for now.

His administration is prioritising tariffs and spending cuts (austerity) over tax reductions and deregulation (growth), adding uncertainty to financial markets and weighing on investor sentiment.

Market Volatility

The recent volatility in the stock market has become a major talking point. After six months of unusual calm, the past week has seen significant fluctuations.

It's important to put these movements into perspective.

Reporting Season

Increased economic optimism and robust corporate earnings have propelled stock markets to new heights. Yet, this rapid growth has left some investors apprehensive about potential overvaluation, while others fear missing out on gains.

Silicon Valley Bank (SVB)

Below is an update on developing news regarding the U.S. banking sector.

Tidal Wave

As highlighted two weeks ago, fundamentals have taken a back seat whilst the central bank's war on inflation drives investor sentiment.

ASX Reporting Season

Macroeconomic events overshadowed the recent ASX reporting season.

Fundamentals have taken a back seat whilst central bankers drive investor sentiment.

Pivot Party

The financial system has taken a small but noticeable exhale, most notably in the U.S. with equities and bonds rebounding from their June lows.

Some are calling this a pivot party, with the prospect of softening inflation data and, therefore, interest rate expectations placing a temporary floor under asset prices.

Bulls & Bears

Recent financial market developments have many investors understandably nervous.

Tackling price inflation through higher interest rates has become a global phenomenon. Tighter than expected financial conditions indicate a meaningful economic slowdown, and recent equity market weakness reflects this.