Henrique Valente: “Market reaction to Trump’s tariffs has been contained”

ActivTrades analyst Henrique Valente, speaking to Jornal Económico (JE), states that the announcement of tariffs by the President of the United States, Donald Trump, which occurred over the weekend, which included a 30% tariff on the European Union, has triggered a "restrained reaction" from the markets.

"After starting the week in negative territory following Donald Trump's announcement of 30% tariffs between the United States and the European Union, the main stock indexes in the United States and Europe have recovered and are trading near all-time highs. The Nasdaq advanced about 1% and the S&P 500 gained 0.5%, while the German DAX remained virtually unchanged," notes Henrique Valente.

The ActivTrades analyst says that the markets' reaction to Trump's tariff announcement, and other recent data, " has been restrained."

For Henrique Valente, the big question is whether this response “reflects genuine confidence” in the resilience of the global economy or whether it results from “excessive complacency” on the part of investors.

"For now, the strong momentum of the stock markets has prevailed, but an acceleration in June inflation data in the US is already anticipated, a scenario that could put the Federal Reserve in an uncomfortable position," says Henrique Valente.

The ActivTrades analyst adds that the focus should now turn to the earnings season , with investors trying to understand whether corporate profits, "which are at their lowest level in the last two years, will be enough to offset the growing commercial risks."