The trade war brings back the Wall Street indicators to the red region
Economic anxiety invaded every corner of Wall Street with the increase in the tensions of the United States and China, which caused the decline in equities, dollar and oil prices, amid US asset liquidations that indicate a disorder in the financial system. A day after the largest shares bought in years, the assets related to the economic cycle returned, as the reassuring messages of US President Donald Trump on commercial negotiations gave no relief. Investors are currently expecting the effect of the real freezing of trading with China on companies and economic growth. The S&B 500 index fell 3.5%. The dollar has dropped to its lowest level since October. Although a strong auction of US bonds has been recorded for 30 years, it could not set fire to a wave of Ascension, but it shows an appetite for effects amid serious fluctuations. Despite Trump’s tips that he is nearby to reach an initial agreement on customs duties, without mentioning the state, optimism in the markets has made concern, with the fear that the escalation of the trade war between the two largest economies in the world will lead to permanent damage to global growth, after the White House announced that the US customs have raised. “Investors are starting to wake up from the fact that the ‘fight for food’ between the United States and China is likely to get worse before it improves. We now realize that a basic drawing of 10% will be painful, and that 90 days will go quickly, and then the pain of higher graphic returns, while China responds strongly,” said Michael Billy, of the FBB Capital Partners. The markets are incredible through the customs wind and the bleeding continues a day after the financial markets celebrated Trump’s decision to postpone some of its customs plans. The sales operations returned to the most risky areas in the market, which is an indication of the increasing doubt about the possibility of closing commercial talks at an appropriate time, despite the statements of the Director of the National Economic Council in the White House, Kevin Hasit, that the United States has made great progress “in its discussions with economic partners. The first signs of slowdown in global trade appear, with companies around the world, amid Trump’s increase in his trade war with China. And if there is a sure thing, it is that Trump is expanding the uncertainty that has already negatively affected the confidence of companies and consumers. “We still believe that the anxiety of customs duties is still standing and strong. Service works in both directions, up and down. The road ahead is likely to include more market fluctuations because we do not have a clear end. In fact, this is the opposite: a possible expansion of the customs negotiation process.” The major US fees over China set fire to a mutual trade war that confused the global financial markets. “The position of the Trump administration has evolved from a comprehensive trade war against everyone to a commercial war focused against China. Most investors believe that China has damaged himself by responding in the same way. In Beijing, the vision is different; many people believe that” Trump’s concession “is a reference to American weakness and thus the validity of China’s decision to esk,” Odan of the Gavical discussion said. Psychological and financial consequences said billionaire Ray Dalio, founder of “Bridge Water Associated”, that investors came from a week of unrest in global markets and that they felt an element of trauma, fear or psychological shock. He added in an interview with Bloomberg TV. “The inflation powered by the fees still comes due to the commercial war, even if the immediate impact is slightly feared.” The extent of the impact of high customs duties on inflation remains an open question, a question that is unlikely to be decided after the 90 -day stop period. “While Thursday’s data showed that US inflation delayed. In March, this data was collected before the extensive fees that could contribute to the price of the price. A health in inflation or a sharp drop in demand? At the same time, an increasing number of Federal Reserve officials expressed concern that aggressive commercial policy could lead to a longer increase in inflation. The US governors of the central bank indicated that they were no longer in a hurry to lower borrowing costs, favorite to wait for how the government’s changes would affect the economy before changing interest rates. For two consecutive days, Trump reiterated his old position that he did not want the US steel industry to be owned by a Japanese company. Customs.