The main fear is that we could see sharp tariffs that would risk further escalation in global trade conflict. Retaliatory measures by the likes of Europe, Canada, and China are also key risks to watch out for, besides Trump's announcement.
As for the bigger picture, it will beg the question: Have we shifted into a new regime where tariff fears will lead to a sell on rallies rather than buy on dips?
There isn't any major economic data releases and so, all eyes will be on Trump's tariffs in the day ahead. That will make for quite a bumpy end to the week, not least with the US jobs report also coming up on Friday.
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