Trump's Tariff Signals Gives Boost to APAC Markets
Mar 25, 2025
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Tim Pagliara, Chief Investment Officer at CapWealth, and Rahul Chadha, Chief Investment Officer at Shikhara Capital, dive into the latest tariff developments and their impact on Asian markets. Pagliara discusses how President Trump's targeted trade sanctions are less severe than anticipated, sparking optimism in equity markets. Chadha analyzes this positive shift, particularly in China and India, amidst the Federal Reserve's cautious outlook on interest rates. Their insights reveal intriguing investment strategies shaped by the evolving economic landscape.
Federal Reserve Bank of Atlanta President signals only one interest-rate cut may occur this year due to tariff impacts on disinflation.
Asian markets showed resilience and growth potential, buoyed by the perception of narrower U.S. trade tariffs than previously anticipated.
Deep dives
Streamlining Office Tasks with Smart Buying Tools
Empowering teams to focus on strategic initiatives and growth is essential in today's fast-paced business environment. By utilizing smart business buying tools, organizations can streamline their purchasing processes, which saves time previously spent on mundane office tasks. For example, leaders can enable their teams to find and purchase necessary items quickly, allowing them to concentrate on more impactful work. This approach not only enhances operational efficiency but also positions organizations to better support their overall goals.
Federal Reserve's Outlook on Rate Cuts
The Federal Reserve is currently evaluating its approach to interest rates, with the head of the Atlanta Fed suggesting that only one rate cut may be likely this year. This was revised from an initial expectation of two cuts, primarily due to anticipated inflation fluctuations and the impact of tariffs on economic stability. The Fed's stance reflects concerns about a slowing economy and consumer sentiment, signaling that any adjustments to monetary policy will be influenced by upcoming economic data. Observers are cautious, noting that consumer confidence may not translate into spending or growth as it did prior to the pandemic.
Investment Perspectives on U.S. and Global Markets
Investors are reassessing their strategies in light of recent economic developments, particularly regarding U.S. tariffs and inflationary pressures. While some experts argue that the worst of the stock market downturn may be over, there are still significant concerns about the sustainability of current valuations amid economic uncertainty. In contrast, global markets, particularly in Asia, seem poised for growth, driven by strong performance in China and India. This creates potential opportunities for investors willing to diversify their portfolios away from the U.S. and capitalize on emerging market trends.
On today's episode, Federal Reserve Bank of Atlanta President Raphael Bostic says he now sees just one interest-rate cut as likely this year, rather than two, with tariff hikes impeding progress on disinflation. We unpack the reaction from Asian markets with Rahul Chadha, Chief Investment Officer at Shikhara Capital. He speaks with Bloomberg's Paul Allen in Sydney.
Plus - Asian stocks rose after US equities had one of their best sessions of the year, fueled by signs that President Donald Trump's trade sanctions will be narrower than feared. We discuss the latest tariff headlines with Tim Pagliara, Chief Investment Officer at CapWealth.