[HONG KONG] Equities meandered on Tuesday as investors awaited the latest developments on Donald Trump’s trade war, while the yen rallied after the head of Japan’s central bank flagged more interest rate hikes if the economy improved.
With Wall Street closed for a holiday, there were few major catalysts to drive business, though investors remain on their toes after the US president’s threat of 50 per cent tariffs on European Union goods and subsequent delay reviving volatility.
But analysts said the uncertainty caused by Trump’s capricious policy announcements, along with his plans to extend tax cuts, was hurting confidence in the US economy and pushing Treasury yields higher.
“Markets are once again dancing on hot coals, front-running White House mood swings while dodging macro landmines,” said Stephen Innes at SPI Asset Management.
“With yields dangling like anvils and tariff threats swinging like wrecking balls, the…
