Trump Tariff Concerns Cause Stocks and Bonds to Drop – Europe Market Wrap

Bonds extended their selloff, while US equities futures fell as traders evaluated fears over tariffs considered by President-elect Trump.

S&P 500 prices began to fall shortly after a CNN story that Trump is considering declaring a national economic emergency to push through his tariff proposals. Stock indexes fell as bond yields and the Dollar index climbed.

In the UK, 10-year bond yields reached their highest level since 2008, while the 30-year inflation-linked note currently yields more than 2%, the highest since the Truss crisis in 2022.

Meanwhile, market traders are prepared for more volatility in the coming weeks.

Credit supply is still continuing, with firms and banks throughout the world raising over $111 billion this year until Tuesday. Despite the volatility in government debt, corporate bond spreads remain close to their lowest levels since the financial crisis.

[02:00 ET] German Industrial Orders MoM Actual -5.4% (Forecast -0.2%, Previous -1.5%) [Euro Weakened]