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We’ve now reacted to Trumps Tariff roll out, with markets selling off, though it’s not too bad at this stage, and there is some buying of weakness around.
As a refresher, Trump announced a 10% base tariff on all imports entering the U.S, with significantly steeper duties imposed on several key trading partners. The blanket tariffs are scheduled to come into effect on 5th April (this Saturday).
We are adding to a position in the Active Growth Portfolio this morning
After promising so much to make “America Wealthy Again.” Donald Trump walked out into the Rose Garden of the White House with all the world watching, an environment he revelled in. Markets have been on edge for weeks, anticipating the likely imposition of worldwide tariffs. At 7 am AEST, US indices ended up strongly ahead of Trump’s “Liberation Day” speech, in the hope that the blanket of uncertainty would be lifted by the speech he proudly titled “The Declaration of Economic Independence Day.”
The market opened nicely higher this morning, though nerves quickly set in ahead of a pivotal day in the U.S with President Trump scheduled to tell all on tariffs from the White House Rose Garden at 7am AEDT. The ASX 200 finished -44pts below session highs.
The ASX200 closed up over 1% on Tuesday on broad-based buying, which saw all 11 major sectors advance, led by real estate, which gained more than 2%. The rebound in the local market felt like fund managers were putting some money to work ahead of tariff announcements and the perceived impact on global inflation and trade.
A solid bounce back today for local stocks, particularly after traders tried to fade the move early with sell orders dominating into strength after the opening spike
We are making 2 changes to the growth portfolio today.
The ASX200 was smacked 138 points on Monday, with over 90% of the main board closing lower, as fears of tariffs and recession kept all but the bravest investors on the sidelines. Local stocks joined a global risk sell-off, as increasing worries about tariffs pushed Japan’s Nikkei down by over 4% and Chinese stocks traded in Hong Kong down by more than 1%. MM is getting the first chapter of our forecast contrarian forecast; let’s hope we are correct come Friday.
A soft session to start a pivotal week in markets, though the XX% decline by the ASX was reasonable given a 2% drop on Wall Street + another –0.7% decline by S&P Futures during our time zone today. Tomorrow the RBA decide on interest rates, no change expected this time around though comments in the statement and press conference with Governor Michelle Bullock will certainly be important, with the market pricing in a 75% probability of a cut in May.
We are selling into Gold strength, taking profit on two holdings.
