- President Donald Trump introduced even more volatility and uncertainty In his trade war, freeing a number of consumer electronics and critical technological components. Although it is expected to increase stocks of US technology companies and the common stock market, bond markets and currencies may become a different story.
President Donald Trump has shown that he could ignite an epic action, as well as liberation from his “mutual tariffs”, most likely to increase shares, but bond markets and currencies may become a different story.
On Wednesday, US shares deployed great income after Trump announced a 90-day pause at some of his more steady tariffs, though he went on a bet for China. This helped to give up some 6 trillion in a market cap that was destroyed when its tariff announcement “Liberation Day” shocked investors around the world.
In another turn issued customs and border defense New Guide late evening on Friday on its so -called mutual tariffs, Release of a number of imports Like smartphones, computers, semiconductors, hardware equipment, flat panel TVs and key technological components.
This is probably fueled by a greater increase in stocks when the markets opens again. In A Post on X on Saturday morningAnalyst Wedbush Dan Jus called Trump exceptions “Best Technology News” This raises a huge cloud over the sector.
However, recent dollars and Treasury bonds have shown that tariff repression could crack stock investors who are looking for rapid profitability, but this does not assure currency and bond investors seeking long -term security.
The 90-day Trump pause on Wednesday helped the Treasury get out of their highs, but they resumed their rise later a week when Bonds sell even as long as stocks have grown.
This is like American assets that have traditionally been considered as safe shelter Loss of this status Among the transition from the dollar, at Like those who develop in the market.
“The market is rapidly canceled,” George Saravel, Head of the FX Research in the Deutsche BankHe said in the note last week, adding that “the market lost faith in the US assets, so instead of closing the asset commitment, while maintaining the liquidity of the dollar, it is actively sold by the US asset itself.”
Earlier, noting that the Trump administration appears to encourage Dalaryanization, Saravel said that he was playing faster now than expected. “It remains to know how this process can remain,” he warned.
Similarly, the President of the Federal Reserve of Minneapolis Nile Kashkar also pointed to the dollar and bonds as the signs that investors are turning away from the US.
“Usually, when you see that big tariffs are increasing, I would expect the dollar to increase. The fact is that the dollar is declining at the same time, I think it gives even more trust in the history of investors,” ” He said CNBC Friday.
Certainly, the death of the almighty dollar was often predicted in the past, without making evidence. And the tendency for dolorization has been going on for years, especially after Russia invaded Ukraine in 2022, causing sanctions on Moscow, which forced other countries to question the safety of their own dollars.
Since then, central banks have been loading gold, which has hit record high prices since Trump’s tariff upset, while China, India, Brazil and other leading economies have not used currency dollars to resolve more international transactions.
But the tariffs blurd once the dominant look “American exclusivity”, “” While the debt growth can start overflow “Unsiliest Privacy” US enjoy.
Meanwhile, The world had already had trouble with confidence with AmericaAs Trump shocked traditional security allies and trading partners since his or her post.
Now the deployment of tariffs that are the highest than a century – even if they are repeatedly watered – may be the beginning of a long split.
“Damage to USD is caused by the market overestimating the structural attractiveness of the dollar as the world reserve currency in the world and is undergoing the rapid dollarization process,” Saraveles said in a separate note. “Nowhere is it more obvious than the long and combined collapse on the currency market and US bonds when it ends this week.”
Originally this story was presented on Fortune.com
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2025-04-12 21:13:00
Jason Ma
