Trump Policy Uncertainty Threatens Deeper Market Correction: ING Economist Warns

• ING's James Knightley warns that Trump administration's policy uncertainty could lead to a deeper market correction, not just short-term volatility.
• Geopolitical tensions (Greenland, Denmark), new tariff threats against Europe, and fiscal concerns in Japan are contributing to market instability.
• Europe is expected to adopt a more robust stance against US trade pressures, potentially leading to prolonged negotiations and extended market uncertainty.
• Reciprocal tariffs between the US and Europe could harm both economies, impacting corporate certainty and potentially slowing the US jobs market.
• Traditional safe havens like US Treasuries and the dollar are selling off, while gold is benefiting from the shrinking pool of reliable safe assets.

Why It Matters: Trump's policy uncertainty, global tensions, and trade disputes could trigger a significant market correction.