Market News

By Wayne Cole and Harry Robertson

Summary

• Dollar up as Trump talks of tariffs on steel, aluminium
• Stocks shrug off tariff threat, with S&P 500 futures higher
• Markets see less scope for Fed rate cuts this year

SYDNEY/LONDON, Feb 10 (Reuters) - The dollar edged higher on Monday after U.S. President Donald Trump warned more tariffs were imminent including on steel and aluminium, although U.S. futures and European stocks shrugged off the looming levies and rose.

Speaking to reporters on Air Force One, Trump said he would announce on Monday 25% tariffs on all steel and aluminium imports into the U.S., and reveal other reciprocal tariffs on Tuesday or Wednesday.
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China's retaliatory tariffs on some U.S. exports take effect on Monday, with no sign as yet of progress between Beijing and Washington.

Investors reacted by pushing the dollar slightly higher, with the index tracking the U.S. currency up just over 0.1% from Friday's close, at 108.17.

It climbed 0.59% against Japan's yen , which had its best week since November last week as investors bet on more Bank of Japan rate hikes. The euro was flat at $1.0329.