Escalation of trade wars is gaining momentum: stock markets are under pressure again

Futures on US indices continue to decline. The reasons are new trade tariffs, fears of a recession and expectations of inflation data. Let's take a closer look.

Escalation of trade wars:

In an attempt to avoid US tariffs, Canada raised tariffs on Chinese goods, but received a counter-attack - China and the US introduced counter-tariffs. Now the EU is also under threat. The risks of a slowdown in the global economy are growing. Against this background, capital is moving into the safe-haven dollar.

Risks of a recession:

Trump recently did not rule out a downturn in the economy, saying that the US is going through a "period of transformation". This is alarming investors, who are already worried about a slowdown in growth. Indices are falling, and demand for safe-haven assets is increasing.

Oil is trying to restore demand:

Brent is rising to $70.53, WTI – to $67.21 after falling to 3-year lows. So far, this is happening as part of a technical rebound after a noticeable drop last week.

Markets are waiting for inflation and the Fed meeting:

Members of the banking regulator are going on a "week of silence" before the meeting on March 19. On Wednesday, the key data of the month will be released - the US CPI. A slowdown in inflation is expected (the effect of the high base of last year), which can support demand for risky assets. Also of interest is the producer price index - PPI, which will be released a day later - on Thursday.

Getting ready for a stormy week!