Whatever stocks do with U.S. “Liberation Day”, bond markets may rejoice
- All eyes are on “Liberation Day”, a big U.S. tariff policy announcement.
- ISM and S&P Global PMI data show manufacturing sentiment hurting.
- Bonds may rise as tariff drama feeds further Fed rate cut speculation .
The markets are on tenterhooks as they await the arrival of so-called “Liberation Day”, the name that U.S. President Donald Trump has assigned to his announcement of what could be a sweeping regime of various trade barriers. “Could be,” because less than 24 hours before the plan’s arrival, its contours remain worryingly opaque.
Mr. Trump has touted “reciprocal tariffs” as the centerpiece of his logic, meaning that he would like to mirror U.S. trading partners’ policies back at them. The president has clarified that if trade barriers facing U.S. exporters are of the non-tariff…
