Following the imposition of further tariffs after the 1st August deadline, IG’s Chris Beauchamp has provided his thoughts.
Chris Beauchamp, Chief Market Analyst at IG, said:
“Any lingering optimism from the run of tech earnings this week has been dispelled by the fresh round of tariffs imposed late last night. The new levies come as the rally from the April low was looking tired and vulnerable, and traders are taking this as an opportunity to reduce risk ahead of the usual August lull.
“The tariffs revive fears of renewed price increases for consumers, most obviously in the US, but potentially around the rest of the world too. Signs of reviving inflation have meant that a September rate cut looks less and less likely, and with most of the big events out the way the time looks ripe for a rerun of last August’s swift outburst of volatility.”
