Market jitters over trade fade as investors call 'Tariff Man' Trump's bluff
The outsized swings in markets on the back of Donald Trump's every word on tariffs just weeks ago have faded to mere flickers, as investors switch their focus elsewhere, and bet against a full-scale trade war really materialising. China is one of the few trading partners on which Trump has increased tariffs, but Hong Kong's Hang Seng index is up 14% year to date, led by a surge in tech stocks. Similarly, traders are banking on less volatility in the Canadian dollar and Mexican peso - both slightly stronger than they were at the start of the year - and an index of European auto stocks - also vulnerable to tariffs - hit a seven-month high this week.