Trump's threats to China elicit market losses

US stocks have sunk losses after President Donald Trump threatened a ‘massive increase’ in the rates on Chinese goods, which reproduced the fear of an increase in the trade war. The profits in the markets faded quickly as the Standard & Poor’s 500 index fell by about 2%, while the Nasdaq increased its losses to more than 2%. In contrast, bonds have risen, with the return on ten years of treasury notes falling by seven basis points to 4.07%. The dollar also fell at the end of its best week since November. Cryptocurrencies achieved their early profits; Bitcoin, the largest cryptocurrency, has dropped by more than 2% to $ 118,700. While Ethereum lost 6%and dropped to $ 4,108. Oil prices also strengthened their declines today, Friday, as Brent -Ru futures for December delivery dropped by 3.8% to $ 62.74 a barrel, while the US Western Texas intermediate crew dropped by 4.2% to $ 58.96. Trump said he had seen “no reason” to meet with Chinese President Xi Jinping, and pointed out what he described as China’s recent “hostile” restrictions on the export of rare earth metals. He added that among the countermeasures considered by the United States, “a large increase in customs duties on Chinese products to the United States is to the United States,” and note that there are also many other measures under serious study. ‘Read more: Trump cancels his meeting with the Chinese president and threatens Beijing with’ massive ‘rates. Shares of companies associated with rare earth metals jumped in New York today, Friday, as shares of MP materials rose by 15%, while US stocks rose 20%. A Chinese counter-escalation. Trump’s statements came after China imposed new port fees on US ships and an anti-monopoly investigation against Qualcomm Inc. began, after new moves to limit the export of rare earthminerals needed in the production of many consumer products. Buy Spree or Bubble? This achievement in the markets comes after several reports of a buying store in the markets over the past few days, which put them at risk, especially if the markets were at their peak. According to a note from Bank of America, investors are currently buying everything from stocks to bonds and cryptocurrencies. The memo, reported in today’s report by Bloomberg, indicated that global equity funds had attracted $ 20 billion during the week during the week, while $ 25.6 billion was flowing in connection funds. Cryptocurrency funds were also a $ 5.5 billion inflow, while nearly $ 73 billion was added to cash funds, indicating that investors still have sufficient liquidity to invest. Artificial intelligence under the Microscope HSBC streets also expected gains in global markets to stop after their record performance, thanks to better than expected profits during the third quarter. Bloomberg quoted Alistair Binder and Dmitri Leskin and said that they did not see artificial intelligence as “bubble area”, given the size of the potential market and that valuations are still below levels of the internet bubble at the beginning of the millennium. They added that lower interest rates and financial relief will encourage investors to put their money into stocks rather than money market funds. What is the AI ​​bubble? The concept and the most prominent indicators of market inflation. Despite the fluctuation seen by the Standard & Poor’s 500 index this week, the index has so far recorded five new record closures, which has brought the total number of record shuts since the beginning of the year, according to the custom investment group. The group said: “What is even more impressive is that these 33 closures came to 57 record closures last year. With a total of 90 record closures in the past two years, there were only five two -year periods in which the market achieved a greater number of record closures. Not to be too optimistic, but that there is a real possibility that this period will take a place in the top of the year.” The market that ignores the uncertainty, Florian Ilbo of Lombard Odier investment managers said: ‘What this week should attract the attention of investors is the progress the market is making despite the uncertainty: prices exceed the boundaries of the returns paid, which one of the many indicators is that the market has decided to ignore and stay in the medium term. “If the expectations for AI adoption or turnover growth are disappointing, according to UBS Global Wealth Management UBS Global Wealth Management, she said: ‘The current transaction flow supports the supply chain of the UBS. In general, we consider the current environment so radically different from previous bubbles, with AI enterprises accepting more careful investment strategies. From signs of weakness at the same time, individual investors buy shares at an unprecedented rate, which is better than the general market. Inc. and riotous platforms-is a substantial achievement of the S&P 500, at a time in which individual trading volume reached a peak. “While the market is reaching the third anniversary of the start of this bull market of the Bull market, we begin to see the warning signs-more than the strength. Behind it starts to weaken.