The dollar decreases, as Donald Trump’s tariff defines economic fears

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The dollar fell on Thursday and global stock markets fell as investors rushed to increasing prices for damage to the world’s largest economy in the trade war Donald Trump.

The dollar decreased by 2.1 percent against a basket of trading partners, on the right track of its worst day since 2022, as investors have been a decrease in growth from the president’s settlement settlement on American imports, and betting on the fastest interest rate discounts.

“The market has swing more towards concerns about how this sharp tariff in negative risks to the American economy,” said Paul McCalel, the global head of FX research at HSBC.

The decline came after the White House was revealed on Wednesday 10 percent of the customs tariff On almost all American imports, 20 percent luxury on European Union commodities and 34 percent on Chinese goods, as well as the definitions that have already been announced.

The shares of companies that focus on export led a sale in Europe and Asia, while futures for American stocks fell, as the markets fell from Trump’s full attack on the global trade order.

Stoxx EUROPE 600 decreased by 1.9 percent in early trading, leading to the fall by consumer and financial shares as investors were concerned about the economic repercussions of definitions against European countries, and their revenge.

“It is worse than expected, there is no sugar coating,” said Chikai Chen, head of the Global Emerging Market shares at BNP Paribas Asset Management.

Adidas and PUMA retailers fell by 10 percent and 9 percent, respectively, while Group Group Standard 8 percent lost. Carmaker Volvo decreased by nearly 10 percent.

At Wall Street, futures contracts indicated a 3.3 percent decrease of S&P 500, which led to more pain in a market that has already been pushed to correct this year by Trump tariff threats And sell in the technology sector.

The shares of American banks were preparing to open less, as Goldman Sachs decreased by 4 percent in the pre -market trade and JPMorgan by more than 3 percent. Chipmaker Nvidia was almost 5 percent less, as technology shares extended their recent fall.

“The trade war is some chaos,” said Eurizon SLJ. He said that the shock will be “a recession for the United States and other places, and financial markets will need to deal with this shock” in order to reduce some definitions.

The strategists said that the size of the dollar’s fall – as the currency fails to perform its traditional role as a haven in times of stress – reflects the increasing concerns about the American institutional power.

“The American administration’s approach to definitions is raising serious concerns about politics’s credibility and undermining (the dollar).”

The euro has risen by 2.1 percent to $ 1.109, on the right track of the largest increase for one day since 2022.

In other places of global stocks, FTSE 100 in the UK decreased by 1.3 percent. Topix in Japan closed by 3.1 percent and the Hong Seng index in Hong Kong decreased by 1.5 percent.

The markets have been rearranged according to the level of pain facing the new commercial graphics. The stock index in Vietnam has decreased by almost 7 percent, the worst initial index to be followed by Bloomberg, after the country was exposed to a 46 percent tariff, one of the largest.

The Japanese yen gathered by 1.9 percent, as merchants searched for protection amid the fall of the dollar.

Government bonds rose when investors searched for safety. The US Treasury’s revenues decreased for ten years 0.13 percentage points to 4.06 percent, as the debt price jumped.

Traders are now pricing three or four discounts in interest rates from a quarter of a federal reserve to support the American economy, up from three on Wednesday, according to the levels involved in the budget markets.

“Even if the customs tariff is eventually reduced by the end of the year, it is likely that the shock is likely to lead in the short term inaccuracy and the rest of it in the near -term in the American economy and reduce the growth of the entire 2025 to the closer or to less than 1 percent,” said Mark Hevelli, the chief investment official of UBS Global Management.

The price of gold fell to $ 3,108 an ounce of TRY after its rise overnight to a standard level during Asian trading. Sensitive goods fell economically, with 4 percent of Brent crude oil sliding.

Jim Reed, in Deutsche Bank, said the investors were “very optimistic” about the comments before the announcement issued by Treasury Secretary Scott Payett that the initial fees would be the maximum.

“It is certainly more dramatic than expected,” said Deng Xuang, the chief economist in Greater China in Standard Charterd. “Even for China, the additional (tariff) is higher than expected.”