Stocks set to rise despite consumer worries about rising prices

The US-China commercial war could mean that the average American family will have to face a loss of $ US4700 ($ 7528) at the last year’s price levels when taking into account President Donald Trump’s rates, which will also cut us the gross domestic product of about 1.1 percent, according to an estimate of 10 April of the budget workshop at Yale University.

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Outside the United States, the equity markets settled after the White House said it had started the commercial interviews with different countries. But a technical problem on Friday created a chaos more linked to trade when US customs and borders protection have undergone a technical problem in its system to exempt freight freight from rates, leaving the government unable to collect duties on imports.

While the actions were relatively calm on Friday compared to the last few days, other financial indicators have launched alarm for the health of the financial system.

A Sell-off in government bonds resumed when the performance of the US treasure at 10 years of age has risen over 4.5 percent at a certain point. The returns move inversely to prices. Treasury bonds are generally seen as a safe refuge in times of economic turbulence, but analysts say that a lack of money on the market is now pushing global investors to collect bonds.

Joanne Bianco, Senior Investment Strategist at Bondbloxx Investment Management, The Washington Post That the activity in bond returns reflects the concerns of the market regarding “inflationary effects of rates”.

If the higher returns persist, “we will not only have more expensive consumer products, but potentially also a higher loan cost,” he warned Bianco. “The longer this extreme volatility continues in financial markets, the more likely it is that something in our financial system can break and we are in a complete crisis.”

The dollar continued a decrease of months this week and recorded its largest one -day drop since 2022 on Thursday. The dollar has decreased by almost 8 % since the day of the inauguration in a prolonged slide. In the meantime, the gold price has risen to the highest level in over 40 years while continued its record series, exchanging at $ US3255.30 on Friday afternoon.

Business leaders in the United States said they are prepared for an economic slowdown if commercial tensions continue.

“I think we are very close, if not in a recession now,” the CEO of Blackrock Larry Fink of the CNBC “Squawk on the Street” said on Friday.

The conversations of the investment company with customers were dominated by uncertainty and anxiety for the future of the economy, said Fink in a press release on Friday.

It increases further “no longer have any economic meaning” because current levels make US exports to China not financially practicable, said the China State Council in a declaration, adding that imposing higher rates would make the United States a joke. The new Chinese rates have an effect on Saturday.

China has announced its latest tariff increase after the closure of most Asian markets. Before the announcement, Hong Kong’s Hang Seng index and the composite index of Chinese Shanghai finished the day slightly higher. Taiwan’s index recorded a 2.5 percent gain. The Japanese Nikkei 225 lost almost 3 %.

The economy has to face a considerable turbulence, said Jamie Dimon, CEO of JpMorgan Chase, while her company has also reported its quarterly results. The US efforts to change tax policy and deregulate could help the economy, Dimon said, but “tariffs and” commercial wars “, sticky inflation in progress, high tax deficits and more high prices and volatility prices” represent potential risks.

“The Chinese problem is a big problem,” he said in a call with analysts on Friday and “a significant change that we have never seen in our life”.

But keeping “the safe and free world for democracy” is more than short -term economic results, Dimon said. “I almost don’t care basically what the economy does after,” he said.

Bloomberg

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