[HONG KONG] Stocks fell on Tuesday as the positivity sparked by recent US trade deals dissipated, with investors now focused on the release of key data and earnings, and the Federal Reserve’s next policy meeting.
While Donald Trump’s agreement with the European Union on Sunday was seen as better than a tariff standoff, observers pointed out that the US president’s 15 per cent levies – with none on American goods – were still much higher than before.
The pact, which followed a similar one with Japan last week, still left many worried about the economic consequences, with auto companies particularly worried.
“The 15 per cent blanket levy on EU and Japanese imports may have helped markets sidestep a cliff, but it’s no free pass,” said Stephen Innes at SPI Asset Management.
“With the average effective US tariff rate now sitting at 18.2 per cent… the barrier to global trade remains significant. The higher tail risk didn’t…
