One step closer to recession?

Trade pressure has reached a new peak, with Trump now targeting the EU after Canada and Mexico. This escalation is raising concerns in the equity markets, leading to an increased sell-off of risk assets and prompting investors to reduce their exposure. The implementation of American tariffs has triggered an immediate response from Canada, reigniting fears related to growth and inflation in the United States, which has weighed on the dollar. In this uncertain context, all eyes are on the Fed, with next week's meeting expected to be closely monitored. We maintain a scenario of status quo for this meeting. In Europe, an agreement on the German infrastructure plan has just been reached, while negotiations regarding Ukraine are advancing without tangible guarantees.