Lates News

Barclays analysts stated in a research report that the threat of the United States imposing a 30% tariff on the European Union will once again test the resilience of the US stock market. The analysts said that if the EU retaliates and the economy falls into a deeper recession, the stock market could see a double-digit drop. If a full-blown trade war erupts, a sharp drop in the market similar to the post "Liberation Day" crash may occur - at that time, cyclical stocks and financial stocks performed the worst, and the lack of liquidity in the summer market may exacerbate the situation, they wrote. The analysts still hold a skeptical attitude towards tariffs being maintained at such a high level. They stated that Trump's tolerance for pressure on the stock and bond markets (and thus damage to the US economy) seems limited. They added that this may limit the level of tariffs he ultimately imposes on major US trading partners.