Market Turbulence Ahead: Trump's Tariff Pause Signals Uncertainty

Global market volatility persists despite Trump's temporary tariff reduction on various countries. A brief surge in stock indices followed by potential risks urged investors to seek safer assets amidst ongoing U.S.-China trade tension. Analysts predict this volatility to continue impacting global economic and market sentiment.

Global investors are bracing for sustained market turbulence despite a temporary tariff pause announced by U.S. President Donald Trump. The decision initially led to a significant relief rally in stock markets, with the S&P 500 surging nearly 10% in a single day, and similar gains observed across Japanese and European markets.

However, experts caution against over-optimism. Portfolio manager Sat Duhra, from Janus Henderson Investors, warns of irreversible impacts and heightened volatility. Analysts continue to suggest reducing exposure to Wall Street shares, instead opting for safer investment avenues like money market funds and high-quality fixed income.

The escalating U.S.-China trade tensions remain a key concern. UBS Global Wealth Management's CIO Mark Haefele calls for strategic positioning amid potential market uncertainties. Despite the tariff pause, experts predict economic growth slowdowns fueled by uncertainty in trade policies. Investors and analysts remain wary as they navigate this era of market unpredictability.

(With inputs from agencies.)