- The global stock markets were in a stand of turbulence this morning As a massive tariff, the trade between the USA and China comes into force. Chinese stocks are relatively buyant and act flat. In the United States, however, the investors in the S&P 500 have been trading both in the trade of Yeerday and this morning in Future’s contracts. It is also chaotic in Japan and Europe.
The China’s CSI 300 index today rose by 0.4%, but that was pretty much the only good news in the global markets. From 5:20 a.m. Eastern time, the creative feeling of investor spread to the west. The Euro STOXX 50 decreased by 1.7%, while the S&P 500 futures decreased by 0.4%.
Goldman Sachs warned of another potential global equity deduction in a message to customers yesterday. “The probability that another sale has been over 35%recently” Assetssays.
US finance ministry sometimes delivers in Asia during trading hours when the investors have broken off Traditional safe port. That makes pressure on the Trump management, which Previously, the shaky bond market quoted For the decision on Wednesday to delay the tariffs.
The US dollar index fell by 1.4%, with investors going to other currencies such as the Japanese yen, the Swiss franc and the euro. Gold, Another safe harborAlso broke over $ 3,200 per ounce.
“There is clearly an exodus of US assets. A falling currency and bond market is never a good sign,” Kyle Rodda, Senior Financial Markets Analyst at Capital.com, said Reuters. “This goes beyond the pricing of a growth and trade uncertainty.”
Here is a snapshot of the slaughter of Assets‘S CEO daily:
- The S&P 500Run by another 3.5% yesterday and has now dropped by 10.4% YTD.
- S&P 500 FuturesWere in the red this morning, before the opening of the bell.
- Against it:China’s SSE CompositeToday by 0.45% and has only dropped by 0.75% YTD.
- Government bondsbehave like risk assets. This is not good, former finance ministerLawrence Summers says.
- The price of gold– Famo a more safer haphapen for the Inkauf –Beat a new record high.
- The Vix Fear Indexhas been highest since Covid was hit in 2020.
- The dollarweakens. It has lost 8.34% of its value YTD compared to the DXY, an index that pursues a basket with generally traded currencies.
- Goldman Sachswarned of another potential global stock deduction in a message to customers yesterday. “The probability that another sale has been over 35%recently,” says the note.
The drops on Friday will follow a sharp decline in the US stock markets on Thursday, since the tariff continues to weigh investors despite Trump’s tariff break at the beginning of this week. The S&P 500 fell by 3.5%, the worst decline in three years.
Investors carry themselves with one Commercial war escalate And Confusion of US policyHow the two largest economies in the world increase their tariff rates to an astonishingly high level.
The USA now a tariff of 145% imposed For all imports from China, the only country that Trump’s “mutual tariffs”. On Friday, Beijing reacted to the recent interest rate increase of the US President and increased his own duties US imports to 125%From April 12th. This will probably be almost completely exclusively bilateral goods trading between the two largest economies in the world.
Despite Trump’s decision to pause his “mutual tariffs”, the US import tasks are still at Historically high Level, thanks to the tariff of 145% on Chinese imports, a flat 10% tariff for all other imports and 25% tariffs for sectors such as cars, steel and aluminum.
Some Asian markets followed the great decline in the US markets on Thursday on Thursday. The Japanese Nikkei 225 index led a decline in the most important markets of the Asia-Pacific and fell by almost 3%on Friday. South Korea’s Kospi also fell by 0.5%, while Australia’s S&P/ASX 200 decreased by 0.8%.
The Japanese and South Korean manufacturers recorded a sharp decline on Friday, and Sony fell 7.4%, the largest of an Asian global 500 company.
Other Asian markets were more optimistic despite the escalating trade war.
Hong Kong’s Hang -Sseng index rose by 1.1%, its fourth day in a row, when the city has recovered from Monday Market -Crash, the worst since 1997. a report From the German newspaper Handelsblatt that China and Europe are in negotiations to reduce the EU tariffs for Chinese cars.
The Taiex index from Taiwan rose by 2.8%, with manufacturers such as Foxconn and Quanta computer in Friday trade in more than 9% profits.
The Indian markets also climbed east with the refined 50s by 1.8% from 5:20 a.m. It is the country’s first trading day since Trump announced its tariff break. (India’s exchange was closed on April 10th.)
Time for a deal?
US trade partners strive to negotiate trade agreements with the Trump administration and to accompany steep “mutual tariffs”.
From now on there are no signs that US and Chinese officials begin negotiations to reset the collective bargaining prices that now extend into the three-digit digits. Instead, Chinese President Xi Jinping is about to start a tour of Southeast Asia. He will also organize European leaders in Beijing in July who South Chinese morning post Reports.
Both the USA and China at least suggest that they will not increase the tariffs anymore. Trump said in comments on reporters on Wednesday that he was probably not likely impose new tariffs in China.
And on Friday Beijing said that it would not take revenge and argue for further Trump threats that there are further tariff hikes without a meal at that time. “If the United States further increases the tariffs for Chinese exports, China will ignore such measures,” said the country’s Ministry of Finance, said the country’s Ministry of Finance In a statement.
This story was originally on Fortune.com
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