- President Trump places tariff at the tariff-He added 30% to Mexico and Europe at the weekend and the markets are still trading near their all-time highs on the assumption that Trump will return. They also rely on the fact that the Fed will relieve interest rates if the tariffs violate the US economy. However, this may not be the case if the FED prioritizes the control of inflation before saving the stock market.
The markets are located near their all-time highs in Europe, Asia and the US bitcoin this morning, and the US bitcoin used to reach $ 122,000 today. There was a moderate amount of sale this morning, but nothing you had to worry about.
And yet, according to some on Wall Street, nothing should happen. This is because investors seem to ignore President Trump’s collective bargaining threats – he imposed 30% on Mexico and the EU at the weekend – when they finally negotiated or further driven into the future.
The markets play a chicken game against the president, in other words. (Trump is always chicken, as they say.) The Taco trade creates a lot of risk ahead of us, so German bank.
“The markets are clearly not a pricing for these higher tariffs, and we may only know the result in the past few hours and offer the potential for a sharp market reaction and increased volatility,” Henry told all of DB to the customers.
His colleague Jim Reid had the same attitude: “To be fair, Trump threatened the EU with a tariff of 50%a month ago, so that this could argue that this is an improvement! The market will generally think that this is largely a negotiation tactic and that we probably cannot recognize such interest,” he told customers. “At some point, someone could be called up. Trump has less pressure to keep their heights and bond markets relatively stable with the US risk marks. If large tariffs are imposed on August 1st in the thin holiday markets, we could receive a considerable market reaction.”
Goldman Sachs sings from the same hymnbook. “The participant and our economists are the markets that come into force several times this year several times this year, probably not that the too high rates are too high to be too high, and therefore mostly contained the self-defeated cycle of fixed financial conditions and the guideline baking track,” said Kamakshya and his team.
Likewise Paul Donovan from UBS: “The financial markets seem to be satisfied that US President Trump will withdraw from her latest trade tax threats.”
The markets also seem to assume that the US Federal Reserve will save it if something goes wrong with their Taco trade.
Bruce Kasman et al. JPmorgan predict a “stagflationsknu tendency” for the second half of the year because the duties of the duties met the economy. “The separation between this forecast and the market prices for considerable profit from the company’s profit and little upward pressure on the US inflation is striking,” they said to the customer at the weekend.
If the tariffs are inflationary, the Fed cannot be able to deliver the cuts to the interest rates that are currently assuming the markets that are price cuts. “Our forecast should also be seen as a challenge for the hug of the market of a Goldillock scenario of solid growth and the declining inflation of the United States, in addition to loosening feeding in the coming year,” they said.
Here is a snapshot of the campaign in front of the opening bell in New York:
- S&P 500 Futures Were 0.3%this morning, Premarket. The index itself closed by 0.33%on Friday, but remains close to its all -time highs.
- Bitcoin is now over $ 122,000, another high.
- South Korea’s Kospi Had rose by 0.83% this morning.
- The Stoxx Europe 600 had dropped by 0.25% in early trade.
- The British FTSE 100 had risen by 0.4% in early trade.
- Hong Kongs Hang Seng had increased by 0.26%.
- Japan’s Nikkei 225 had dropped by 0.28%.
- China’s CSI 300 Index Was flat and stayed over 4,000 nuns, it is an all-time high.
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