- President Donald Trump gave more fluctuations and uncertainty In his commercial war by exempting a group of consumer electronics and critical technology components. Although it is expected that the shares of American technology companies and the total stock market are expected, bond and currency markets may be a different story.
President Donald Trump has shown that he could provoke an epic gathering of stocks, and it is likely to enhance exemptions from “mutual definitions” of stocks, but bond and currency markets may be a different story.
On Wednesday, American stock indicators recorded tremendous gains after Trump announced a 90 -day stoppage on some sharp customs tariffs, although he raised the China rate. This helped to reshape some of 6 trillion dollars in the market that was blocked when the declaration of the “liberation day” tariff was shocked by investors all over the world.
In another development, American border customs and protection have been released New instructions late Friday night On the so -called mutual definitions, Exempt a set of imports Such as smartphones, computers, semiconductors, chip -making devices, flat plate TVs and major technology components.
It is likely to feed more stock gains when reopening the markets. in Post on x Saturday MorningWedbush analyst Dan Evs described Trump’s exemptions “The best possible news for technology investors” This raises a huge cloud on the sector.
However, the last dollar bonds and the treasury bonds have shown that a tariff tariff may encourage stock investors looking for quick returns, but it will not be reassured by currency investors and bonds looking for long -term safety.
The 90 -day tariff of Trump on Wednesday helped the treasury revenue to move to its highest levels, but they resumed climbing them later in the week like The bonds are sold even as the shares rose.
This, as American origins, were traditionally considered as safe havens Loss of this situation Amid a shift away from the dollar, with the former Treasury Secretary, Larry Samarz, warned against the circulation of American bonds Like those in the emerging market nation.
The “fast -fushing market”, George Saravilus, the global head of foreign exchange research in German bankHe said in a note last week, adding that “the market has lost confidence in the American assets, so that instead of closing the responsibility by storing liquidity in dollars, it sells the activity of the American assets itself.”
After previously indicated that the Trump administration appears to be encouraging the direction of manufacturing manufacturing, Saravilus said it is now playing faster than expected. “It remains to see how this process can remain organized.”
Likewise, the head of the Federal Reserve at Minneapolis Neil Kacquari also pointed to the movements of the dollar and the Bund as signs that investors are moving away from the United States.
“Usually, when you see an increase in the large customs tariff, I expected the dollar to rise. The fact that the dollar is decreasing at the same time, I think, adds some credibility to the story of investor preferences,” He told cnbc Friday.
Certainly, the Great Dollar has been predicted in the past without being achieved. The direction of the abolition of fading continues for years, especially after Russia invaded Ukraine in 2022, which led to sanctions against Moscow, which led other countries to question the safety of its property in dollars.
Since then, the central banks have been loaded on gold, which has recorded high record prices since the Trump tariff shocks, while China, India, Brazil and other non -dollar currency economies have been using more international transactions.
But the definitions have eaten the dominant view of one day “American exceptional,” While the height of the debts may start overcoming “Excessive Franching” Enjoy the United States.
During, The world was really facing confidence issues with AmericaTrump has also shocked traditional security allies and commercial partners since he took office.
Now, the width of the customs tariff that is the highest in more than a century – even because it disappears over and over again – can be the beginning of permanent split.
“The damage to the US dollar has occurred: the market re -evaluating the structural gravity of the dollar as the global reserve currency in the world and is subject to a process of rapid disposal.” “There is no more clear place than the continuous collapse and society in the currency market and American bond grazing with this week approaching.”
This story was originally shown on Fortune.com
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