The US administration changed its tone to tariffs again on Tuesday. The Secretary of the White House Press and the Secretary of Treasury accused the Amazon of a 'hostile political act', after Amazon planned to expose the cost of tariffs to its consumers. This day came before Amazon's revenues were reported on Thursday, and its stock prices preceded the US Open and dropped more than 2% to this day.
Political risk rises again
The US administration often saves them for other countries it believes that gives the US a raw deal in global trade. Now it appears that the US administration is targeting US companies asking the logic of its moves. It is significant. Financial markets have been a -rolled political interference in the global economy in recent weeks. Investors do not melt the political risks properly, so if the Trump administration is now publicly accusing US companies of hostile actions if they do not agree with the president's economic economic policy then it will prevent the recent recovery rally.
This announcement weighed US stocks in advance of tomorrow, with the consumer decision sector taking the biggest knock. The Vix Index is higher behind these comments, US stock markets point to a lower open, and the dollar is back away from recent highs. President Trump is scheduled to speak later on Tuesday, if he doubles the criticism of Amazon, it is worth watching the market reaction.
US trade deficiencies have expanded to be recorded
Amazon News came after the release of US trade shortage for March. It expanded to $ 162bn last month, from $ 147.8bn in February, and greater than expected. The 12-month total is $ 1.4 trillion, a high record. Although this data does not include the impact of Trump's reward tariffs, it can be alerted to President Trump, as US goods deficiency in China is very similar to China's excessive goods in the US. It should be narrow in the coming months, but at what costs the US economy? Some analysts are now focused on supply shocks in the US after a collapse in container ships from China to the US in recent weeks.
The latest update from the White House suggests that entrepreneurs and investors need to be careful again about tariff dangers, especially since China doesn't seem to be playing the ball when it comes to talking to the end of the US/ China trade embargo.
FTSE 100 Outperforms
Equity Equity markets are often mixed -Huning as we move on the sun on Tuesday. The FTSE 100 has made an 180-degree turn, from caught up in the Eurostoxx index, it is more transformed, as materials and financial stocks gain a strengthening and opposition to weakness in the health and energy care sectors. The defensive features of the FTSE 100 are also attractive -it is also appealing when negative tariff headlines appear. Revenue reports have a huge impact on the UK index today. Associate British Foods, BP and Astra Zeneca are all weighing on FTSE 100. Astra Zeneca may have posted revenues that beat expectations; However, almost half of its income came from the US, and it was under the threat from US Pharma tariffs.
Halo -Mun Signals from markets
Financial and registration markets can take a decent recovery in recent weeks, but as shown today, risks remain. The markers of volatility also tell us different things. The Vix Index, Wall Street's Fear Gauge returned to the levels last seen at the beginning of April, however, the volatility index in the bond market may fall sharply from its climax, however, it remains well above the levels from late March. Also, the CBOE 1-month indicated correlation index for the 50 largest S&P 500 companies, has retreated from its climax in early April, but it still remains close to highs since August 2024. This means that the US's largest stock tends to be together, so a bad headline about risk can see the largest stock falling into unison and the general index.
CBOE 1-Much indicates volatility for the largest 50 stocks in S&P 500
Source: XTB and Bloomberg
Although the absence of incendiary tariff comments from the White House in recent weeks has strengthened the market status, the question now is, is the good news going to continue for markets to maintain their recovery? We will know that on Tuesday. Both the US and China seem to have two different agendas when it comes to trying to organize a deal to end effective trade between the two countries. President Trump suggested that he had a good conversation with President Xi of China, however the commentary in China seemed to be more aggressive in criticizing the US.
China is approaching its neighbors in Asia and beyond the US painting as an oppressor that is unreliable in the economic and financial management of the global economy. Instead, it is painting itself as a 'old'-based order. China is approaching the US as equal to trade negotiations at this time. This relationship change can make it more difficult for both sides to organize at the end of the trade war, which may return to financial markets.
Today, investors are wondering what will fall for the US economy and for US companies. The US GDP for Q1 will be released on Wednesday, and Apple and Amazon will report results next week.
In the FX space, the dollar was wide higher on Tuesday, especially compared to the Aussie and Kiwi dollars, and the Swiss Franc. The Euro and the CAD hold compared to their G10 peers, but even when they fall as the dollar tried to stage a return. The dollar has been caught in recent market recovery, especially compared to stocks, which could be a sign that the FX market is more exposed to trade flows and US trade relations compared to global focus US companies. As we move to the US session, the dollar quickly weakens and turns back to the highs of the day, as tariff headlines have been negative again.
