The euphoria unleashed yesterday on Wall Street extends to Europe and Asia today. In the application of tariffs and markets, and the third of more caliber since World War II, while Nasdaq added 12.16%, its best record since 2001 and the second best in history. The future of the Euro Stoxx 50 join the celebration and rise by 7.8%, which anticipates an opening of strong profits for the IBEX. In Asia, the increases range between 2% and 8%, shortly after they have entered. However, there are certain caution signs: the futures of the S&P 500 index quote planes, after yesterday’s binge. The profitability of the US debt relaxes, but remains above Friday’s levels. The dollar falls slightly in front of the euro after the increases and the Brent barely moves. The commercial war between the United States and China is intensified, and the operators are perplexed at the abruptness in the turns of Trump’s tariff plans.
The leaflet announced by Washington on Wednesday, which occurred with the European stock markets already closed and less than 24 hours after new US tariffs for its commercial partners came into force, occurred after the most intense episode of volatility in financial markets since the first days of the pandemic. The shock for the Trump tariff program and the commercial battle with China evaporated billions of capitalization in the bags, and unleashed the critical voices of large investors of Wall Street and investment bankers, to which reproaches were also added from the republican ranks themselves. But the most striking alarms jumped in the fixed income market: since Monday, the price of the United States Treasury debt, traditionally considered a shelter value, fell without brake and yields, which move the price, fired. and admit a partial suspension of the application of taxes. The 10 -year US bonus yield, which on Wednesday’s session came up with more than 20 basic points, relaxes this 9 points on Thursday and is located at 4.3%, a level even higher than 3.99% on Friday. “You have to be flexible,” Trump said after announcing the measure and after several days he was firm with his initial decision.
In Asia, the Nikkei points 9.2%, Hong Kong Hang Seng adds 3.17%and Korean Kospi, 6%. The Shanghai compound index, which has contained the falls this week thanks to a joint intervention by Chinese Bolsa houses, rises 1.3%.
In the currency market, the dollar takes up the falls in front of the euro after yesterday’s pause. The green ticket drops 0.3% against the European currency and each euro costs $ 1.09. JP Morgan economists warn that the tariff suspension is “simply the end of the principle”, as Reuters collects. The United States trade war, they say, is far from finishing.
Petroleum, which yesterday shot 4% as soon as the levy application stop was known, falls today. The price of Brent barrel decoced 0.6%, until it is 65 dollars.
Goldman Sachs reduced his probability of 45% recession after Trump’s decision, from the previous 65%, stating that tariffs that remain in force are probably in a 15% increase in the general tariff rate. Analysts warn that the sudden increase the bags may not repair all the damage. Several surveys point to a slowdown in business investment and household spending due to concern for the impact of tariffs. A study of Reuters/Ipsos has revealed that three out of four Americans foresee an increase in prices in the coming months.
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