Morgan Stanley survey: Inflation and tariffs are expected to have the biggest impact on global markets this year

JPMorgan Chase’s annual survey of more than 4,200 institutional traders showed that the volatility in global financial markets caused by the US government’s new round of tariff war this week seems to be just the beginning of a turbulent year. Inflation and tariffs are expected to have the greatest impact on the market this year, followed by geopolitical tensions. About 41% of respondents emphasized that volatility is the biggest challenge facing daily transactions, up from 28% last year. Chi Nzelu, global head of fixed income electronic trading at JPMorgan, said that Trump’s tariffs will continue to affect transactions in currencies such as the Canadian dollar, Mexican peso and offshore renminbi. Although hedge funds are most active in the foreign exchange market, the increase in transactions caused by tariff news should not be limited to the foreign exchange market.