Asian stocks drop with Trump's increase in its trade war

The futures of US indicators have decreased and Asian stocks dropped by a cautious start for the week, after US President Donald Trump had commercial tensions, announcing 30% fees on goods imported from the European Union and Mexico. The S&P 500 futures fell 0.5%in Asian trading, while European contracts fell 0.6%. Asian stocks fell 0.1% by Japan, while the yen rose against the dollar. Gold also continued its profits for the fourth day with the support of the demand for safe assets, and the silver has risen to circulate near its highest levels since 2011, while “Bitcoin” retained its circulation above the 119 thousand dollars after recorded a record level this weekend. The markets swing between ignoring the threats and anticipation of the new Trump threats that test the flexibility of the market after expanding its commercial measures last week to include Counter Countries to Brazil and Algeria. Despite the warnings of recreation, investors still act as if they were betting on the president’s refuge of his steps based on the precedents of his resorts due to previous threats. The S&P 500 and MScis for global markets recorded record levels this month. “Investors should bet Trump only threatens the 30% customs duties on European goods. These level of punishment, but it is likely to harm the Europeans more than the United States, which means the time they are pushing,” said Brian Jacobsen, the chief economist in Anix Wildetle Manjint, in a memo. Financial markets are fighting the price of the intermittent customs campaign that Trump launched during his second term. While ‘Liberation Day’ ads led to a wave of sale in dangerous assets and even US bonds on April 2, most of these movements later reflected after Trump postponed the implementation of many threats. ‘The erosion of the credibility of US policy’ tried to conclude a preliminary agreement with Washington to avoid the highest fees, but Trump’s recent message was the positive atmosphere in Brussels, although it left a margin to make subsequent adjustments. The federation is now preparing to strengthen its coordination with other countries affected by the US drawings, according to people who are familiar. “Why would any country enter into a trade agreement with the United States after seeing what happened to Mexico and Canada a few years after the signing of the free trade agreement? At some point, the markets will deal with what our continuous erosion sees in the credibility of US policy,” Wayne Thin, head of the World Market Strategy in Brown Brosos Hariman, wrote in a Memorandum. The pressure on the ‘federal’ and the possibility of dismissing Powell in a separate file has reinforced Trump and his allies their criticism of the ‘Federal Reserve’, Jerome Powell, against the background of the renewal of the central bank headquarters. Some US administration officials are trying to build a legal case to isolate Powell of the governor. Trump said in comment on Sunday night that Powell’s resignation would be “a good thing.” In this context, George Saravilus, a strategic analyst at Deutsche Bank, said that the possibility of the dismissal of Powell posed a major danger that was not fully expressed in the markets, and this could lead to the decline in US dollars and bonds. He added that “forcing Powell to resign within 24 hours can lead to the decline of the likely trading of 3% to 4%, as well as a decrease in effects by 30 to 40 basis points.” The attention of Asia is on their way to China and under the test of the concentration of Asian markets soon to Chinese trading data to measure the impact of US fees, along with GDP and inflation indicators in Europe and the United States. The second season results season this week also begins, in the midst of the worst, that the worst will be the worst since mid -2013, at a time when it increases the pace of reducing credit ratings of companies. “The next profit season will test the market balance between momentum and value. Global assets look fragile before external shocks, and you won’t find much comfort in reducing interest rates or expanding customs duties,” Bob Savage, head of the total market strategy on BN Way Mellon. In corporate news, Elon Musk said that “Tesla” intends to seek the view of the shareholders about whether it will invest in the company “Xai” after a report from the newspaper “Wall Street Journal” reported that “SpaceX” had prepared to invest two billion dollars in the ‘Grock’ chat developer.