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The US dollar, treasury bills and stocks have been sold while banks and investors have warned Donald Trump prices could switch the United States in the recession even though the president fell from a full-fledged trade war.
The dollar slipped against the main currencies of trade partners at a hollow of more than 20 months while the rush to American assets sent the Yen, the Euro and the Sterling Book.
The yield on the US Treasury of 10 years of reference reached 4.46% on Friday, compared to 4.17% at the end of April 1, the day before Trump’s “Liberation Day”. Gold prices have reached a summit of all time while investors fled in Haven’s assets.
Thursday, the S&P 500 fell by 3.5%, a lively turnaround compared to the overvoltage of 9.5% of the previous session. Wall Street’s reference sharing index is down 6.1% for April. The heavy nasdaq composite in technology fell 4.3% after its best day since 2001. Tokyo shares also slipped on Friday.
The markets had resumed the ground on Wednesday after Trump interrupted the “reciprocal” prices abrupt on a band of countries for 90 days. The gains were a stay of the Heavy sale on the US marketsWho had infiltrated this week on the 29TN treasury market, the basis of the financial system.
But Wall Street’s banks and investors said that the president’s decision to hoist the rights to Chinese imports as high as 145% and to remain in place of 10% price He always presented a serious risk for the American and global economy.
“American exceptionalism has been tarnished,” said Mitul Kotecha, responsible for emerging Macro Strategy markets at Barclays. “A large part of this sale occurs in Asian hours … It is to be feared that foreign investors, especially the Chinese, are beginning to unload treasure good.”
The 30 -year yield increased by 0.03 percentage points to 4.9% Friday after increasing 0.13 percentage points on Thursday.
Goldman Sachs said it was “too early for” clear “” and warned that “although certain risks of immediate tail have been reduced, political uncertainty remains very high and should weigh on consumer and business activities”.
The markets remained under a strong pressure while Trump held a television meeting from the firm to the White House. The Treasury Secretary Scott Bessent, answering a journalist who asked questions about the slide on the markets, said: “I don’t see anything unusual today.” He answered the question after Trump said he had not seen the markets on Thursday.
Trump said about China: “We would like to be able to conclude an agreement. They really enjoyed our country for a long time.” He also said that he was ready to bring back the large reciprocal rates if other countries refused to forge new trade agreements with Washington.
On Thursday, China imposed its additional tariffs of 84% of Tit-For-Tat against the United States, which allowed more than 100% its total levy of American imports. President Xi Jinping pointed out that he would not back up after climbing the trade war, but Beijing did not immediately do not to match the even higher rate of Trump.
“If you want to speak, the door is open, but the dialogue must be made on an equal footing on the basis of mutual respect,” said the Chinese Ministry of Commerce. “If you want to fight, China will fight to the end. Pressure, threats and blackmail are not the right way to face China.”
The renminbi has weakened at its lowest level since 2007 in the last sign that Beijing was willing to tolerate progressive damping in response to American prices.
The fears of a widening of the trade war between the two largest economies in the world have also lowered oil prices, the Brent international reference crude regulating 3.3% to $ 63.33 per barrel. The intermediary of West Texas settled just below $ 60 per barrel, an analyst price said could threaten the American shale sector.
The commercial dispute with China, the world’s largest exporter, has increased the average of the United States on imports from the Asian country to 134.7%, according to the Peterson Institute for International Economics.
A separate analysis of the Yale Budget LAB said that American consumers are now faced with a tariff rate of 27%, the highest level since 1903, taking into account the American prices and those imposed against America.
The uncertainty about Trump’s commercial policies and objectives was likely to “soften the markets and macroeconomic prospects in the months and quarters to come,” added Bill Campbell, global director of bond portfolio at Doubleline.
Reporting by Kate Duguid, Will Schmitt, Harriet Clarfelt and George Steer in New York, Steff Chávez and loves Williams in Washington and William Sandlund and Arjun Neil Alim in Hong Kong
