Markets on Edge: Inflation, Tariffs and the Search for Safety

Lale Akoner, Global Market Analyst, eToro

Financial markets are grappling with heightened uncertainty as inflationary pressures and
escalating global trade tensions weigh heavily on investor sentiment, according to Lale Akoner,
Global Market Analyst at eToro.
Last week witnessed a sharp rise in UK government bond yields—reaching levels not seen since
the 1990s—while US yields also surged. The driving forces behind this volatility include
persistent inflation and a marked shift toward protectionist trade policies.

“Investors are increasingly pulling away from long-term bonds and are instead turning to safer
havens,” said Lale Akoner, Global Market Analyst at eToro. “High-yield savings accounts,
dividend-paying stocks, and companies with robust cash flow—particularly in resilient sectors
like healthcare and defence—are now in sharper focus.”

Contributing further to market uncertainty is former US President Donald Trump’s latest tariff
proposal, which seeks to impose duties of up to 145% on Chinese imports. While major tech
companies such as Apple and Nvidia appear to be spared, others—including automotive leader
Jaguar Land Rover and gaming giant Nintendo—are facing increased pressure.
Currency dynamics have also taken center stage. China has allowed the yuan to weaken in an
effort to absorb some of the tariff shock, while in the UK, declining bond prices have
paradoxically supported equities as markets begin to anticipate a potential interest rate cut.​