020 7898 0500Shares in European carmakers fell throughout yesterday, following concerns that they could be dragged into a trade war instigated by Trump. He has suggested that he might impose tariffs on auto imports and that there is economic justification for tariffs. If the tariffs go ahead, it could make it uncompetitive for European carmakers to sell cars in America, hence the drop in share price. It will be interesting to follow developments in the coming days and weeks.
The main release in the US today is the inflation rate for May. It is expected to nudge up to 2.7% from 2.5% the month before. This would take it further from the Federal Reserve’s 2% target and they might feel obliged to act if the figure continues to grow in the coming months.
