Trans-Atlantic Defense Alliance Fractures on Europe: 19 February 2025
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Market Mood
Global markets are experiencing heightened uncertainty due to recent trade policies, shifting investor sentiment, and monetary policy decisions. President Trump’s tariffs on Canada, Mexico, and China have led to retaliatory measures, escalating geopolitical tensions and unsettling businesses. This instability has driven gold prices higher, weakened the US dollar, and accelerated inflation, while the Federal Reserve maintains a cautious stance on interest rates. In contrast, Europe has adopted a more supportive monetary approach, with rate cuts by the Bank of England and the European Central Bank. Meanwhile, Trump's strong approval ratings and potential Ukraine ceasefire discussions may influence market sentiment, with upcoming flash PMI data offering key insights into how economies are adapting to these challenges.