A piece of news, a sound of jubilation

Most of the Asia-Pacific stock markets have risen, and the gains are not small, influenced by a piece of news.
Bloomberg cited informed sources as saying that members of Trump's economic team discussed ways to gradually increase tariffs to avoid soaring inflation.
Given Trump's threats looming over almost all asset classes, especially China, the gradual implementation of tariffs by the United States has dispelled market concerns. Once the detailed tariff plan is announced, investors may breathe a sigh of relief, as this will eliminate uncertainty about the tariff schedule and levels.
1. Bloomberg's report came out after the global market closed on Monday (around 6:00 a.m. Beijing time on Tuesday), but the US dollar index fell in the last minute before closing. It is clear that someone knew the news in advance. Be extra cautious about the news of Trump's tariffs. Currently, at least three media outlets have reported three different versions of the content.
2. This news has triggered a wave of joy in the global market:
- The Chinese market has sparked optimism, with Chinese stocks generally rising more than 1%. Investors are also closely watching China's macro policy response after Trump takes office as US president next week.
- Gold price rose $10;
- The wave of selling U.S. Treasury bonds temporarily stopped, and the yield on 10-year U.S. Treasury bonds is currently at 4.77%, further away from the 4.8% level.
3. For the Federal Reserve, Trump's gradual increase in tariffs will increase its work difficulty. The Fed will need more time to evaluate the impact of tariffs on inflation, which means that the Fed's pause in interest rate cuts may be longer. Many analysts predict that if tariffs are raised, the US CPI may return to over 3% in the second half of this year.
4. The closing of the US Dollar Index is very important today, which signifies the view on Trump's tariff policy. The US Dollar Index did not decline during the Asian trading session, which may be a delayed reaction to the news. If the US Dollar Index closes higher today, the risks faced by the global market will further increase.
In addition, the sell-off of the Nasdaq index is still ongoing, and tonight's closing of the U.S. stock market is also crucial. Today's trend is not decisive, as the U.S. December CPI data will be released tomorrow, and Wednesday's closing will be more indicative.