Sectors to watch ahead of April 2 reciprocal tariffs:
Trump's reciprocal tariffs are set to be announced on April 2 and are expected to establish the tone for the market over the next few months. A wide range of tariffs bode poorly for riskier assets in Q2, but any signs of exemptions or a delay could help a relief rally.
Furthermore, there is a threat of retaliation from US trading partners, which could push the US closer to full-scale trade wars with its key trading partners.
The US car industry has been very much at the centre of tariff-related turmoil, particularly after Trump announced 25% tariffs last week. These will bring a sharp increase in costs and disrupt global supply chains. Reciprocal tariffs could add further pain to the sector.
Meanwhile, chip stocks, like car companies, also have global supply networks that are vulnerable. Nvidia, AMD, and Intel are stocks to watch here.
Pharmaceutical giants such as Pfizer and Johnson & Johnson could also be exposed, as reciprocal tariffs could impact everything from drug sourcing to distribution.
How to trade Pfizer?
Pfizer has been trending lower since July. The price trades below its falling trendline and recently failed to recover above the 200 SMA., rebounding lower. This, combined with the RSI below 50, keeps sellers hopeful of further losses.
Sellers will look to extend the bearish trend toward 24.20, the November low, and 23.70, the 2024 low.
Any recovery would first need to retake the 50 SMA at 26.00, before bringing the 200 SMA and falling trendline into focus at 26.90
In Europe:
The European Union has been informed that there are no ways to avoid the reciprocal tariffs expected this week or the US auto tariffs applied last week.
German carmakers were very much in focus as they send more cars to the US than any other country. Companies such as Porsche and Mercedes-Benz have fallen, and their operating earnings could decline by as much as 30% in 2026.
European miners have also been in the spotlight due to the 25% tariff on metals. Rio Tinto is one of the biggest aluminium suppliers in the US market, with about half of its production manufactured in Canada last year.
Novo Nordisk, the weight loss drug maker, could sell off further—threats of a 25% levy on the EU with pharmaceuticals in the firing line. Novo Nordisk, the maker of both Ozempic and Wegovy, has stated that it isn't immune to Trump's tariffs, despite investing billions in US production.
The company is expected to manufacture more medicine within the US and has announced plans for a $ 4.1 billion factory in North Carolina. However, even when drugmakers produced in the US, ingredients for medicines often come from abroad.
The drug makers surged to record highs last year, boosted by strong and growing demand for its weight loss drug. However, the sharp rose has fallen sharply in recent months.
How to trade Novo Nordisk?
Novo Nordisk trades within a falling channel dating back to July. The price has fallen almost 30% to its current level of 475. The RSI is in oversold territory, so sellers should be cautious entering at this level, and a period of consolidation or a move higher could be on the cards.
Buyers would need to rise above 540 to negate the near-term downtrend and rise above 640 to create a higher high.
Meanwhile, sellers would look to extend the downtrend to 435, the lower band of the falling channel.
Barrick Gold
Gold has risen to a fresh record high as it approaches $ 3,100. However, mining stocks haven’t kept pace and could present an opportunity.
Gold has surged over 15% YTD amid rising uncertainty over the impact of Trump’s trade tariffs, fears of an economic downturn, and central bank buying. Uncertainty is driving demand for the safe-haven metal even as inflation expectations rise and the Fed pauses rate cuts.
Despite the recent relentless rally gold is still some way from its all-time inflation-adjusted high, which was in 1980 and equates to $3800 per oz. With this in mind in addition to the fundamental drivers, gold could push higher
While Gold miners have risen in recent months, they have underperformed the yellow metal, which could present an opportunity. Barrick Gold trades at a 5-month high.
How to trade GOLD?
Barrick Gold trades in a triangle pattern. The price recovered from the 15.25 2025 low, rising above the 200 SMA. This, combined with the RSI above 50, keeps buyers hopeful of further gains.
Buyers will look to rise above 20.40, the falling trendline resistance, and above 20.90, the 2024 high, to create a higher high.
Support can be seen at 17.25 the 200 SMA. A break below here brings 15.25 into focus and 15.25 to create a lower low.
