Trump’s tariff plans send shockwaves across financial markets: Markets around the world started the week in the red in anticipation of the US implementing higher tariffs on its largest trading partners and threatening the EU may be next. Japan’s Nikkei fell 2.7% during yesterday’s trading, the FTSE 100 was down 1.0%, Kospi fell 2.5%, while the S&P 500 closed down 0.8%.

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A better performance than initially expected: The tariffs on Mexican, Canadian, and Chinese imports were set to take effect at midnight before US President Donald Trump paused the 25% tariff on Mexican and Canadian imports for a one-month period. The move had markets performing better than initially expected.

Investors are hopeful that the tariffs will never see the light: “Call us deluded, but we still think that permanent tariffs on the US‘s allies (Canada, Mexico) will not be a thing … That’s because concessions are an ‘easier’ way to deal with Trump’s ‘problems’ (from a cost-benefit and game-theoretic perspective), and Trump likes to make deals,” Macquarie’s Thierry Wizman said.

Markets aside, the tariffs will have a broader economic impact, possibly hurting “the economies of the US and its neighbors while putting upward pressure on inflation,” CNBC writes. “Our economists expect that fully implemented tariffs would have meaningful consequences. A recession in Mexico becomes the base case,” one Morgan Stanley strategist said, pointing to increased inflation and lower economic growth.

Is the EU next in line for the Trump tariff? Trump told reports that levies on goods coming from the EU could be introduced “ very soon.”

All of the international pages had coverage of the new: BBC | AP | CNBC | Reuters | FT

MARKETS THIS MORNING-

After a rocky start to the week, Asian markets are in the green in early trading this morning — the Nikkei is up 1.5%, the Hang Seng is up 2.8%, and Kospi is looking at gains of 1.8%.

EGX30

29,755

-0.6% (YTD: -0.1%)

USD (CBE)

Buy 50.28

Sell 50.41

USD (CIB)

Buy 50.31

Sell 50.41

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,377

-0.3% (YTD: +2.8%)

ADX

9,576

-0.1% (YTD: +1.7%)

DFM

5,183

+0.1% (YTD: +0.5%)

S&P 500

5,995

-0.8% (YTD: +1.9%)

FTSE 100

8,584

-1.0% (YTD: +5.0%)

Euro Stoxx 50

5,218

-1.3% (YTD: +6.6%)

Brent crude

USD 75.41

-0.3%

Natural gas (Nymex)

USD 3.35

+10.1%

Gold

USD 2,857

+0.8%

BTC

USD 101,932

+5.1% (YTD: +9.0%)

THE CLOSING BELL-

The EGX30 fell 0.6% at yesterday’s close on turnover of EGP 3.1 bn (18.4% below the 90-day average). Regional investors were the sole net sellers. The index is down 0.1% YTD.

In the green: Beltone Holding (+4.6%), Orascom Construction (+1.3%) and CIB (+0.5%).

In the red: Orascom Development (-2.6%), Palm Hills Development (-2.6%) and Alexandria Containers and Cargo Handling (-2.6%).

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