A More “Targeted” Approach to Tariffs Renews the Risk-On Trade

Equity futures are up with the suggestion of smaller reciprocal tariffs

Highlights

• Equity futures are up with the suggestion of smaller reciprocal tariffs

• European survey data show green shoots

• Diversification looks increasingly prudent…

• … as the 60-40 asset mix and equal-weight index both beat the S&P 500 YTD

Key Takeaways

• Trump Administration Floating Smaller Reciprocal Tariffs: The latest rumblings out of the White House are that the April 2^nd launch of the reciprocal tariffs will be far more targeted and less sweeping than initially envisaged (see White House Narrows April 2 Tariffs from today’s WSJ). This revelation has sent U.S. equity futures sharply higher and European stocks up by a further +0.7% here in the early going.