Emerging market currencies are on their way to their biggest daily losses since November due to Trump's threats

Emerging market currencies are on track to suffer their biggest daily decline since November, after US President Donald Trump threatened to impose a ‘massive increase’ in the rates on Chinese products, increasing the possibility of returning to a trade war between the world’s two largest economies. The MSCI Emerging Currency Index market fell by 0.54%, led by the Brazilian Real, South Korean won and South African Rand. Trump said he no longer saw “any reason” to meet with Chinese President Xi Jinping. Trump cancels his meeting with Chinese president and threatens Beijing with ‘massive’ customs. Trump’s statements have led to a decline in markets around the world. His post on social media comes after a series of measures from both countries aimed at limiting technology and material flow between them, before a planned meeting between the two presidents in Asia later this month. The return of trading shooters between America and China. Elias Haddad, a strategic analyst at Brown Brothers Harriman, said: ‘The return of the merger of the US China Trading War puts pressure on high-risk assets’, adding that ‘the increase in trade shooting is an obstacle to the world economy growth.’ Concerns about Brazil’s exchange rates have dropped in Latin America, become the infection of the decline of Brazil, as concerns about the growing fiscal deficit are putting the Brazilian real under pressure. Investors fear that the government’s efforts to promote the popularity of President Luiz Inacio Lula da Silva before the 2026 election will increase the burden on public finances. Trump’s threats to China are provoking market losses. Luis Hurtado, a strategist at CIBC in Toronto, said: “Although we do not expect a major deviation from fiscal targets this year, any financial measures aimed at increasing Lula’s popularity before the presidential election is subject to careful monitoring by the markets, and this may result in sharp rise in the Riyal. Korean won and Asian shares under pressure the South Korean won, when local trade resumed after a week-long holiday. Shares have fallen 0.9%, and Chinese technology companies, including Tencent Holdings and Alibaba Group Holding, have led the wave of losses. Stock markets have experienced sharp volatility this week amid the fear of a bubble formation in technology stocks related to artificial intelligence, which has led the recent bull market. What is the AI ​​bubble? China shares have fallen, and the CSI 300 index on the continent fell by 2% after Beijing imposed restrictions on the export of some rare earth. Investors have also become more careful about shares of Chinese Chip enterprises due to concerns about their excessively high valuations. Sharwa Shanana, chief strategist at Saxo Markets, said ‘Asia faces a main streets at Saxo Markets, adding that’ Gold’s decline is the feeling of ‘everything’, due to profit capacity after the $ 4,000 level has been exceeded, and partly due to the calming of geopolitical tension, even the news of the Ceasefire, do not press …