Trump Tariffs Stall Global Dealmaking

Markets unsettled as tariffs return and Fed flags inflation risks.

TL;DR:

• 🌍 Trump tariffs halt dealmaking rebound
• 📉 Fed minutes highlight inflation, jobless risks
• ⚠️ Tariffs and capital tax fears weigh on markets
• 📊 Key ISM Manufacturing data due today

🌍 Trump Tariffs Halt Dealmaking Rebound

Renewed U.S. tariffs announced by former President Trump have abruptly ended the tentative recovery in global mergers and acquisitions activity. Cross-border dealmaking momentum stalled as companies reassess risks and costs, with financial markets reacting negatively to the escalation in trade tensions. Source

📉 Fed Minutes Highlight Inflation, Jobless Risks

The latest Federal Reserve meeting minutes revealed growing concern among policymakers about persistent inflation and rising unemployment risks. This cautious outlook weighed on equity sentiment and reinforced expectations that interest rates could remain elevated for longer. Source

⚠️ Tariffs and Capital Tax Fears Weigh on Markets

Markets faced additional pressure from renewed tariff measures and growing fears of potential capital tax hikes. Investors shifted to defensive positions as headline risks increased volatility, with global indices closing lower on the day. Source

📊 Key ISM Manufacturing Data Due Today

Traders are closely watching for today's release of the ISM Manufacturing Index, a critical gauge of U.S. industrial activity. The data is expected to provide further insight into the health of the economy and influence short-term market direction. Source