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Traders work on the floor of the New York Exchange (NYSE) in the New York financial district in New York.
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April services for financial markets have been broader and more volatile than typical boots, the aggressor and constant trade policy can be more extensively due to the financial position of the United States
This S & P 500 President Donald Trump’s April 2 Tariff announcement, until 2008 and 1987, the start of the last seven trade days, starting a rocky start of the stock exchange and other key asset grades, including the dollar and other main active classes.
“Since this year, since this year, this is what happened, which is the whole of the United States and the dollar, which is the speech.Square box“
The big swings in the stock market are growing in their heads, but the Wall Street Pros is increasingly worried about movements in currency and bond markets. Treasurys and dollars are usually benefited from the flight and safety environment, a function of the US historical financial power.
But on Friday, the falling bond prices pushed benchmark 10 years of treasury product 4.5% briefly, above 3.99% a week ago. Meanwhile, Ice US $ Index hit the lowest level in three years. Greenback, especially Japanese Yen and Swiss franc, as well as the acute drops against a reliable currency such as the euro.
“The market re-evaluates the structural attractiveness of the dollar as the world’s global reserve currency.
Dollar, for a popular event, is the lowest in Friday since 2022.
A blow for confidence?
Quick movements in financial markets can be mechanical for each other’s nutrition. For example, foreign investors can already show low pressure because the decreases of foreign investors are less needed for greenback, for example, because the reduction in US shares and bonds.
However, the size and volume of movements indicate that there may change something deeper and now investors who are away from the United States
“Normally, when I saw the big tariff increase, I would wait for the dollar to rise. I also decline in the dollar, and provide more reliability to the story Investor benefits change“Minneapolis Fed President Neel Kashkari Friday saidSquare box“
The same thought process can be in the game in the bond market, because foreign governments and other institutions are usually great owners of US treasures. Gennadiy Goldberg, the head of the US strategy on TD securities told CNBC that foreign investors did not see the direct evidence that the treasury was thrown, but the fear is only enough to move the market.
“Markets are very confident. The perception of foreign investors to move away from the treasury markets can also cause a very important panic,” Goldberg said.
Economic effects
These actions can only have a real economic impact, not an abstract of financial markets. It can be seen that the products of companies with significant foreign sales businesses are held at the intersection of the global trade dispute. If the sensitivity continues, a part of Anti-American may be an issue.
“Many of our large companies with large brands abroad are discriminatory (against) … currently there is a major image,” Blackrock CEO Larry Fink Friday “Squawk on the street“
The rising treasury also gives a cloud with the extension of the worldview and economic growth for US government expenses. The higher productivity means that the United States, new spending or new expenditure or new expenditure will be more interested in problems related to the federal deficiency.
“Continuous US steady state levels move at a low level. This is the expansion financial policy to support the growth of the UK and France, the United Kingdom and France are facing similar restrictions,” Deutsche Bank wrote.
This is the probability of another ignition in inflation, walking on market movements. Although the latest readings are relatively cool, they do not reflect April tariff ads. The most recent university Michigan Consumer Survey showed Americans worried about a spike in inflation closed to tariffs.
Inflation is not only concerned, but also limits options Federal reservewho refused to cut interest rates when consumer prices rise.
“This is what comes next and this tariff is managed by this tariff. It changed the dynamics within the bond market:” Friday, Bianco President Jim Bianco, “he said.Money. “And all this speaks of Chinese or banking or selling other items or talking about other items or other items.
– CNBC’s Michael Bloom helped to report.
