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President Donald Trump has introduced more volatility and uncertainty He took part in his trade war by exempting various household appliances and critical technical components. It is expected to increase stocks across US technology companies and stock markets, but bond and currency markets could be a different story.
President Donald Trump has shown he could trigger an epic stock rally, and while his exemption from “mutual tariffs” is likely to further boost stocks, bonds and currency markets may be a different story.
On Wednesday, the US stock index made significant profits after Trump announced a 90-day suspension on some of his sudden tariffs, but he hiked China's rates. It helped to curb some of the $6 trillion market capitalization that disappeared when his “Day of Liberation” tariff announcement shocked investors around the world.
Another twist is the US Customs and Border Patrol issued New guidance late on Friday night Regarding his so-called mutual tariffs, Exempts various imports Smartphones, computers, semiconductors, chip manufacturing equipment, flat panel televisions, major technical components, and more.
As the market reopens, it could drive more stock growth. in Please post on Saturday morning XWedbush analyst Dan Ives called Trump's exemption “The best news possible for high-tech investors” It lifts a big cloud over the sector.
However, while recent sales of dollars and Treasury bonds have shown that tariff deferrals could burn stock investors looking for quick returns, they cannot reassure currency and bond investors seeking long-term security.
Trump's 90-day tariff suspension on Wednesday helped Treasury yields begin at highs, but they resumed their climbs later in the week. Bonds sold out while stocks were rising.
It is a US asset that was traditionally considered a safe haven Lose that status Away from the dollar, former Treasury Secretary Larry Summers warns that US bonds are trading Like emerging market countries.
“The market is repeating rapidly,” says George Saravelos, global head of FX Research. German BankIn a memo over the past week, he added, “The market has lost faith in US assets, and instead closes the inconsistency of assets liability by hoarding dollar liquidity, it is actively selling US assets itself.”
Saravelos said he is now playing faster than expected, as he had previously pointed out that the Trump administration appears to be encouraging a trend towards deco-oping. “We still don't know how orderly this process was,” he warned.
