A look at the coming day in the European and global markets of Tom Westbrook
American actions have finally caught up at night that the currency and bond markets have been saying for several weeks: a slowdown has happened.
The 4% fall in Nasdaq was the steepest in two and a half years. Bond yields have dropped sharply and markets are now prices in a probability of approximately 50 to 50 years of Fed reduction rates in May.
Tesla’s actions have halved since their post-electoral heights and the dollar, which increased in anticipation of Donald Trump’s policies, has now started to slip as he slaps the tariffs on his neighbors.
The so-called “Trump Trade” is in full retirement and the “Trump has put”, or the expectation that he could be sensitive to falls on the stock market, has so far been nowhere.
Citi has lowered its recommendation for the allocation of American assets, reducing the “neutral” actions of “over -the -day” after the closure of the market, claiming that during the coming months, at least, it is not clear that the outperformance of the American economy can continue.
Asian markets have done their best to stabilize the ship, helped a little, because it is everywhere outside the United States which benefits from any flow of repatriation of American assets.
The stocks in Tokyo, Seoul, Hong Kong and Sydney were out of the first low in the afternoon, but the atmosphere was tight. US action contracts also dropped at the start of the trade and, while recovering their losses, find it difficult to make a lot of progress beyond dishes. [MKTS/GLOB]
The scene on the monetary markets was silent. The yen has increased for weeks and has passed a new five -month peak of the session in Asia – although, as some dealers have noted, they are stocks catching up in dollar / yen rather than the reverse.
The euro has also shown little reaction to the German Greens promising to block the plans to increase military spending, perhaps in anticipation of a compromise agreement.
Key developments that could influence markets on Tuesday:
Managed: Volkswagen, TP ICAP
Economy: United States.
(By Tom Westbrook; edition by Edmund Klamann)
