Dollar & Gold Rose Following Trump’s Tariff Comments – Europe Market Wrap
The dollar rose and gold reached a new high as Trump announced plans to put tariffs on steel and aluminium imports, causing further market turbulence.
The yen and Canadian dollar were the biggest losers against the greenback as the Dollar Spot Index reached its highest level in over a week, with investors concerned that growing tariffs would raise inflation and limit the Federal Reserve’s capacity to decrease interest rates. Bullion rose to $2,903.21 as the president’s latest trade threats fuelled demand for haven assets.
S&P 500 and Nasdaq 100 futures contracts rose at least 0.4%, indicating a recovery from Friday’s steep losses. The tariff news bolstered American metals stocks, with United States Steel rising as high as 15% in the premarket. Alcoa gained 5%. Europe’s Stoxx 600 index increased.
Trump’s plan to impose a 25% tariff on steel and aluminium on Monday heightened already tense sentiments ahead of Fed Chair Powell’s semi-annual congressional hearing and the US President’s likely announcement of reciprocal tariffs on “everyone” this week. Trump stated that the metals tariffs would apply to imports from all countries, although he did not specify when they would go into force.
