 Global markets brushed aside the latest escalation in the US-led trade war last week, with equities rallying to fresh record highs and risk appetite proving remarkably resilient. Overall, the muted investor response suggested markets were pricing in the tariff headlines as more bark than bite, at least for now. Aussie led pack, benefiting from a perfect storm of positive drivers: firm risk sentiment, surging copper prices, and a surprise decision by the RBA to hold rates steady. Dollar followed closely as traders adjusted their Fed expectations, while Swiss Franc came in third. At the bottom of the leaderboard, Yen was the week’s worst performer, followed by a battered Pound Sterling and a soft New Zealand Dollar. Euro and Canadian Dollar were middling performers. Looking ahead, trade developments remain in focus. Over 20 countries have now received individual tariff letters, and the administration has signaled that blanket 15–20% tariffs may apply to remaining partners. Europe remains the big unknown—with the White House expected to send tariff letters to the EU imminently. Any escalation there could test market calm and shake up the late summer outlook...... |
