Despite their opposing meanings, the terms “peace” and “tariffs” dominated discussions yesterday, trending prominently on Google and various news platforms.
Early in the morning in Asia, President-elect Donald Trump announced via social media his intention to impose a 10% tariff on Chinese goods and a 25% tariff on imports from Canada and Mexico. However, it remains unclear whether this 10% is an addition to existing tariffs or a new levy on top of the previously discussed 60%. Following this announcement, markets experienced a brief dip but quickly rebounded, with the FTSE China Index rising 0.28% to 13,043 and the Hang Seng Index (HSI) increasing 0.04% to 19,159.
In the United States, the S&P 500 marked its seventh consecutive session of gains, climbing 0.57% to a record high of 6,021. The Federal Reserve’s minutes indicated a preference for a gradual approach to monetary policy, which has shifted market expectations for a potential 25 basis point cut in December from 60% to 70%. Today’s macroeconomic data releases—including jobless claims, PMI, PCE, and GDP figures—will provide further clarity ahead of next month’s FOMC meeting.
In contrast, cryptocurrencies lagged behind, with Bitcoin falling to $92,000, remaining within 9% of the $100k mark.
Additionally, a potential peace agreement or at least a truce between Israel and Hezbollah is expected to be signed before the year ends, following a devastating full-scale war.