FT News Briefing How to trade the trade war
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Feb 7, 2025 Amazon's shares plummet after disappointing earnings, stirring uncertainty in the trading landscape. The Bank of England reduces interest rates to combat slowing growth. Meanwhile, rising tensions in the Democratic Republic of Congo highlight Rwanda's role in supporting rebel groups, raising concerns over regional stability. Investors are advised to diversify, looking particularly to European markets amid ongoing tariff talks and market volatility.
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Amazon's Earnings Reaction
- Amazon's shares fell as much as 7% after a weaker-than-expected earnings outlook.
- The company anticipates a significant unfavorable impact from a strong U.S. dollar.
Market Reactions to Tariffs
- Investors are unsure if President Trump's tariff threats will stick or be bluffs.
- The market's mild reaction indicates a belief that the tariffs may not last long.
Navigating Tariff Uncertainty
- Spread your bets across different asset classes and geographies to mitigate risk.
- Avoid putting all your investments in one basket during times of uncertainty.