Uncertainty over the impact of tariffs on economies around the world, particularly North America, continues to impact investor sentiment as President Trump’s April 2 “Liberation Day” approaches.
In a sign of investors becoming increasingly cautious, Gold has broken out to a new all time high today climbing above $3,100/oz for the first time ever. Silver, meanwhile, is up 0.7% and trading back up above $35.00/oz. Meanwhile, cryptocurrencies are getting hammered this morning with Bitcoin falling 2.3% and Ether falling 5.1%.
US equities continue their steady retreat. Index futures are down 0.1%-0.3% adding to yesterday’s US index losses of 0.3%-0.5%. The NASDAQ continues to lead the way back downward also showing that capital continues to move out of risk markets. European trading is mixed with the Dax down 0.5% and the FTSE up 0.2%. The Nikkei lost 1.8% in Asia Pacific trading.
Gloomy forecasts from company managements continue to roll in with confession season (the time just after the end of the quarter when managements are known to put out profit warnings) potentially starting next week. In earnings news, athletic clothing retailer lululemon is down 11.0% in premarket trading today as investors focused more on management projections of slowing sales this year rather than the company beating sales and earnings forecasts last year.
Canadian GDP for January came in slightly better than expected (0.4% vs street 0.3%). US Core PCE inflation, the Fed’s preferred measure, showed a slight uptick in inflation (2.8% vs street 2.7%).
The US Dollar is strengthening this morning, bouncing back 0.1%-0.2% against the majors. Commodities are gaining slightly with Crude Oil up 0.1% and Copper up 0.2%.