Morning Bid: Caution prevails amid jitters over tariffs and stagflation
Caution is prevailing in Asian markets as investors weigh the impact of US President Donald Trump's trade policies on global growth, with concerns about stagflation mounting despite a recent retreat from record highs. The Dow Jones Industrial Average remains under pressure due to the ongoing tariff threat, while Walmart's latest sales and profit outlook has also dampened investor sentiment. As economic uncertainty persists, markets are likely to remain in a risk-averse mode.
- The escalating trade tensions between the US and its trading partners could have far-reaching consequences for global supply chains, potentially leading to widespread disruptions and impacting industries beyond those directly affected by tariffs.
- How will the growing unease about stagflation impact monetary policy decisions, particularly in countries with already weak economies?