QCP Asia Colour - 26 February 25 A global risk-off move has sent equities, gold, and BTC lower, with whispers of stagflation gaining traction on the street. Soft data suggests tariffs are already weighing on consumer sentiment, as reflected in the Consumer Confidence Index miss (98 vs. 103 expected). Meanwhile, short-term inflation expectations remain elevated across consumer surveys. While it’s too early to confirm a stagflationary trajectory, the market’s reaction to recent developments signals growing unease. The U.S. administration’s confirmation of a 25% tariff on Canadian and Mexican imports (effective March 3) has further dampened sentiment. With expectations of tougher actions against China, investors are reducing risk exposure amid heightened uncertainty. The government is proving it’s not just bark but bite, adding to market jitters. We see limited marginal buyers for risk assets in this environment, increasing the likelihood of further downside as crowded trades unwind. The “Magnificent 7” trade…