TikTok’s Future in U.S. Hands?

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.4170-1.4390

Euro                 1.5280-1.5500

Sterling            1.8370-1.8590

WTI Oil (opening level) $69.40

The CAD/USD is opening at 1.4283 ( 0.7001 )

Headlines

·    Tariff news: Trump floated more tariffs on the EU and Canada if they worked against the US, and signed an order to slap a 25% tariff on all cars not made in the US, effective April 3

·    US factory orders for business equipment unexpectedly fell in February amid tariff and tax policy uncertainty. Core capital goods orders dropped 0.3%, while shipments rose 0.9%. Machinery and equipment investment is set to rebound this quarter, but GDP growth may still slow.

·    Trump said he would consider lowering tariff rates imposed on China to secure Beijing's support for a sale of TikTok's US operations to an American company.

·    Mixed Fed signals: Neel Kashkari from the Federal Reserve Bank of Minneapolis expects interest rates might decrease in the next year or two as inflationary pressures ease. Meanwhile, Alberto Musalem from the Federal Reserve Bank of St. Louis warns that tariff-related inflation could persist, possibly keeping rates steady, and stresses the importance of stable inflation expectations.

·    Industrial profits in China fell 0.3% in the first two months of 2025 compared to the same period last year, suggesting the recovery in China's economy remains fragile and may be hurt by rising tariffs and deflationary risks. A turnaround in profits is essential to encourage companies to invest and hire, thereby boosting domestic consumption

Key Points

·    Equities: US auto tariffs; tech selloff; European autos decline; Asian tech and auto stocks hit

·    Volatility: VIX spikes significantly; heightened short-term risk; cautious outlook

·    Digital Assets: Cryptocurrencies steady; mining stocks sharply lower; GameStop's Bitcoin move

·    Currencies: EUR pressured by tariff threats; GBP declined on weak CPI and budget update

·    Fixed Income: US Treasuries edged lower, reversing recent gains

·    Commodities: Gold supported by fresh haven demand; Oil drillers warn about Trump chaos hurting output

·    Macro events: Norway rate decision, US trade, initial jobless claims and home sales