Tariff Tensions and Bond Calm: Market Positioning Amid Political Risk

Edmond de Rothschild’s latest Market Flash evaluates the cross-asset impact of rising US trade tensions, regional policy shifts, and corporate developments, offering timely insights for asset allocators.

• Geopolitical overhang builds: Looming US tariffs (20–50%) on key imports and politically targeted surcharges create uncertainty for global trade and inflation paths.

• Relative value in fixed income: Government bonds in eurozone markets offer improved entry points, while credit markets remain technically supported despite low volatility.

• Selective equity exposure: US valuations remain rich; the focus is on corporate debt and opportunistic trades in EM and European equities sensitive to trade outcomes.

How might prolonged tariff ambiguity or a surprise trade deal reshape market leadership? Dive into the full report for regional breakdowns and tactical asset class views.