Morning Bid: US growth fears compound tariff nerves
Asian stocks are set to open on the defensive on Monday, taking the baton from a bruised Wall Street on Friday as worries over the U.S. economy and new tariff threats form President Donald Trump cast a cloud over world markets. Investors will digest Germany's election, which saw a victory for opposition conservatives and the far-right Alternative for Germany's best ever showing. The market tone on Monday will be one of nervousness and uncertainty, as investors seek the safety of bonds, gold and the U.S dollar.
- This nervousness may not be entirely unwarranted, given the long history of economic downturns that have preceded significant changes in global trade policies.
- Will a similar pattern emerge if the new tariffs are implemented, or can the markets somehow anticipate and prepare for such developments?