Slide in US dollars, Wall Street leaks provided when global markets react to rates
The new rates of President Donald Trump sent shock waves through the markets on Thursday, with the US dollar and the American actions among the most difficult affected on the fears that a expanded commercial war will stimulate the recession in a fragile world economy.
Trump said he would import a basic rate of 10 % on all imports to the United States and higher duties on some of the country’s greatest commercial partners. The new withdrawals increase a commercial war that Trump began on his return to the White House, touching the markets as the fears grow that these moves could unleash a strong global economic slowdown and the inflation of fuel.
The equity markets collapsed and the investors rushed to the relative safety of bonds, gold and yen. The Futures S&P 500 dropped by three percent, suggesting that investors expect deep losses when Wall Street will open later during the day.
The United States treasure has slipped, the Chinese yuan dropped to a minimum of seven weeks and the dollar had a strong sales pressure.
The dollar index, which measures the Currency of the United States against another six, has fallen by 1.6 percent to 102.03, the lowest since the beginning of October. The dollar index dropped by over 5.7 percent this year.
The euro, the largest component in the index, gained 1.5 percent to a maximum of six months of $ 1,1021 USA.
The Yen strengthened a maximum of three weeks against the dollar and 1.7 percent was lasted to 146.76 per dollars, while the Swiss franc touched its strongest level in five months to 0.86555 per dollar.
“It is very difficult to see how other countries make concessions that would encourage the United States to raise these rates. And I think it is a great inexpensive risk,” said Nicholas Rees, head of macro research at Monex Europe.
Big Tech, dealers feel early pain
Apple sank 6.5 percent, hit by an aggregate rate of 54 % on China, the base for most of Apple’s production. Microsoft dropped by 1.8 percent, Nvidia slipped by 3.5 percent and Amazon.com dropped by 5.1 percent.
“The rates for barbells on a national basis for the country of Scream” negotiation tactics “, which will keep the markets at the limit for the near future”, said Adam Hetts, global Multi-Sharr manager and portfolio manager of Janus Henderson Investors.
The Canadian automotive sector is preparing for the potential impacts of 25 % of the US tariffs while steel and aluminum manufacturers, already affected by rates, are struggling with additional costs and lost business.
The retailers were hit hard on Thursday, with Lulemon down 10.3 percent, Nike dropped 8.3 percent and Walmart of 6.2 percent after Trump imposed some of the most punitive rates on the main production hub including Vietnam, Cambogia, Indonesia and China.
The maximum weights of the automotive industry were also falling: the general engines of two percent and Tesla decreased by about 5 %.
The caliber of fear of Wall Street, the Cboe volatility index, touched a maximum of three weeks at 25.64 points.
Me plot the answer
The head of the EU Ursula von der Leyen described rates as a serious blow to the world economy and said that the blocking of 27 members was ready to respond with countermeasures if the talks with Washington failed.
Von der Leyen said that the EU was already finalizing a first package of rates with a maximum of 26 billion euros ($ 28.4 billion in US) of US goods for mid -April in response to the American steel and aluminum rates that had effect on March 12.
“And now we are preparing for further countermeasures to protect our interests and activities if the negotiations fail,” said Von der Leyen in a declaration that has read in the city of Uzbek of Samarkand on Thursday, in view of an EU Asian partnership summit.
Front burner29:13Trump’s commercial war becomes global
The EU also deals with the US rates of 25 % on steel and aluminum rates, on cars from Thursday and on the parts of the car within a month, with pharmaceutical products perhaps to come.
French President Emmanuel Macron Thursday will host representatives of the business sectors who will be affected by the new rates, which apply from Saturday.
