Stocks gain after mild US inflation; yields buoyed by trade tensions

We deeply regret this measure,

European Union President Ursula von der Leyen said

Uncertainty remains in the air as the outlook for consumer price inflation remains blurred by trade policy developments,

TD Securities analysts wrote in a client note

James Reilly (Irish politician)senator of Ireland

What is more uncertain is the outlook for future inflation and the state of U.S. economic activity, thanks largely to the unpredictability of U.S. trade policy,

said James Reilly, senior markets economist at Capital Economics

Tariffs pose inflation pressures to the world economy, which would be a nightmare for central banks... central bankers are just being more cautious and keeping an open mind to what's to come,

said Carol Kong, a currency strategist at Commonwealth Bank of Australia

Investors are having a tough time discerning what they should expect on a go forward basis,

Mr. McKnight said

Rising investor concerns over the impact of tariffs on U.S. growth is spilling over into Asian equities,

Mr. Goh wrote in a report

Trade uncertainty is the main driver of market concerns but once we get more clarity, consumers and businesses may adjust, and the impact could be less severe than feared,

said Mr Yeap

Tim MurrayuS stocks in the near term,

What started with a decline in expensive tech stocks … has given way to a broad-based equity sell-off as the looming threat of extended trade wars and softer economic data stoked fears of recession,

said Mr Tim Murray, a capital markets specialist at T Rowe Price

These will aid to counter a potential drop off in tariff-sensitive exports from the ongoing trade war,

Mr Aw said

Also, as the banks are cyclical stocks that are highly correlated with the overall economic outlook, a deterioration in US economic conditions resulting in more than expected number of rate cuts would affect their share price performance from margin compression,

the analyst added

Trump’s tariff policies continue to have a destabilizing effect on markets, with investors left guessing as to which measures will either be added or walked back next,

said Tim Waterer, chief market analyst at KCM Trade

The only thing that makes sense is for Canada to become our cherished Fifty First State,

Trump said, while announcing his latest upping of the ante in his trade war

Mao Ning (diplomat)chinese Foreign Ministry spokesperson

If harming China's interests is what the US wants, China will take resolute countermeasures. If the US truly wants to solve the issue, then the right thing to do is to consult with China on the basis of equality, mutual respect and mutual benefit to address each other's concerns,

Mao said

The threat of a recession is real,

Olu Sonola, head of US regional economics at Fitch Ratings, was quoted by ABC News as saying on Tuesday

At the start of 2025, a trend emerged of capital outflows from the US stock market while funds flowed into China's A-share and H-share markets,

Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Tuesday

If the US' policies were to comprehensively target more countries, they would have a greater destructive impact on the world,

he said

The US market has been led a lot by the NASDAQ (and) the magnificent seven,

Tagliaferro said

I hate to predict things like that."

Asked if he was expecting a recession in 2025, Trump said

There is a period of transition because what we're doing is very big. We're bringing wealth back to America. That's a big thing. It takes a little time. It takes a little time."

He added