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us tariffs delay boosts markets while oil prices decline amid trade tensions
US President Donald Trump postponed tariffs on imports from Canada and Mexico, leading to a slight recovery in US stock markets, particularly among car manufacturers. Meanwhile, the euro fluctuated against the dollar, and oil prices fell amid concerns over trade wars and OPEC+ production discussions. The Japanese stock market also rose, benefiting from the tariff suspension.
Trump's Treasury pick boosts global markets and investor confidence
President-elect Donald Trump’s nomination of hedge fund manager Scott Bessent as U.S. Treasury Secretary has sparked optimism in global markets, with currencies rallying and the U.S. dollar index falling. Bessent, seen as a moderate choice, is expected to advocate for a softer approach to tariffs and fiscal responsibility, potentially easing concerns over inflation and deficit spending. His appointment could signal a shift towards pro-business policies, boosting investor confidence and impacting Asian currencies positively.
uk borrowing costs rise amid concerns over fiscal policy and inflation
U.K. borrowing costs rose following a budget announcement that included £70 billion in spending funded by tax hikes, raising concerns about fiscal responsibility and inflation. Analysts believe this situation differs from the 2022 mini-budget crisis, though market apprehension remains due to the government's investment strategy and upcoming U.S. elections. The British pound has also seen fluctuations against the dollar and euro amid these developments.
uk government prepares for first budget amid economic uncertainty and tax speculation
U.K. Finance Minister Rachel Reeves is set to deliver the Labour government's first budget in nearly 15 years, addressing a £100 billion spending gap amid rising government borrowing costs and declining business confidence. The budget will propose changes to debt rules to free up investment funds, while tax increases for higher earners and potential adjustments to inheritance and capital gains taxes are under consideration. Analysts warn that balancing fiscal responsibility with growth initiatives will be a challenging task for Reeves.
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