Two winks to investors slid by President Donald Trump with few hours of difference have been received with relief and even enthusiasm. The, together with its manifestations in favor of reducing tariffs to China in order to reach an agreement they have meant an oxygen ball for markets. The dollar rises strongly and the main European stock market indices shows solid advances. On the contrary, gold, considered refuge value, appeals the maximum of the last days. Despite the good tone, operators have a loophole for doubt: uncertainty remains very high, trade negotiations do not show tangible advances and Washington drifts suggest new episodes of volatility. No one dares to throw the bells on the fly.
The dollar shot at dawn with respect to the rest of the currencies after the president of the FED, Jerome Powell, who even threatened to dismiss. The proclamation against the Central Bank, initiated last week, caused an unprecedented credibility crisis and undermined the confidence of investors in US assets, which led the dollar to minimum levels of three years. The United States currency has stopped the strong increases of the first moments, although it continues to recover land: it advances 0.4% compared to the European currency and each euro costs $ 1,138.
The dollar also rises against other currencies – in Japanese and the Swiss Franco – who have been considered active refuge since the commercial storm began, although the profits are moderated as the day progresses.
European stock markets add to the good general tone. The main Spanish index, the advances 1.4%, less than the European Euro Stoxx 50 index, which earns 2.5%. The German Dax index is despite the one that the greatest gain is noted in the old continent: 3%. In Wall Street, the futures of the S&P 500 earn 1.4%.
Within the IBEX, the greatest advances are for some of the most penalized values since the commercial tension was aggravated at the beginning of April. Enter the companies that go up are the IAG Air Group (owner of Iberia and British Airways) and also the Arcellorormittal Acerera. On the side of the falls, the worst part is for the electricity sector, such as Iberdrola and Endesa, with declines of around 1%.
The rowing up to 3,350 dollars ounce from the historical maximum of $ 3,500. “Although it is still early, the mood in the market is obviously changing and what yesterday was a strong tendency to sell in the United States has been partially reversed,” said Chris Weston, head of research at the Pepperstone Bolsa House. “The markets are becoming increasingly used to the president expressed impulsively and then changed position as if it had never been an important problem,” he says.
In the raw material market, oil scale positions this Wednesday. The Brent, reference in Europe, advances 1.5%, to $ 68,470 per barrel, while the American crude adds 60 cents, up to $ 64.27 per barrel.
Despite the bouncing of the bags, April is aimed at a negative balance for the fluctuations in the tariff politics that Trump announced last 2. The announcement of the severe rates worldwide, the pause decreed shortly after, except China, with the aim of negotiating with the countries and all kinds of comments by Trump, including attacks on US institutions such as Fed, they have undermined Investor feeling. Thus, concerns about the evolution of the economy and the risk of inflation are still very present. It is still considered that tariffs wear the world economy, since the International Monetary Fund.
Investors today expect the publication of the preliminary activity rates of the manufacturing and services sectors, the PMIS of the month of April, both of the Eurozone and of its main economies, Germany and France, as well as the United Kingdom and the US Economies, despite a small deceleration, remains in expansive territory. “We believe that if the data is similar or better with respect to those expected, the markets reward them, while if they are worse than expected, they could ballast the behavior of the markets,” they indicate in Link Securities.
For their part, from rent 4, they emphasize that yesterday we had declarations of Lagarde, stating that Trump’s commercial war could end up benefiting the EU by promoting new agreements with third countries, including Mercosur, India and even China. “Despite the positive tone of the Trump-Meloni meeting last week, there have been no direct negotiations between Lagarde and Trump,” says the analysis firm.
In the business level, today the presentations of results continue in the USA. Yesterday, it was the turn of Tesla, which recorded a fall in its benefit of 70%. Despite these weak figures, their price was driven in the markets out of time (5%) for the expectation that Elon Musk will focus more on the company, from May.
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