Take five: Final Damage | Hellenic Delivery News Worldwide
When the financial market tries to move fears of past tariffs, attention shifts to what China will do to protect its economy and how American companies and global business activities survive.
International monetary funds and World Bank Spring Meetings took place in Washington while with a background in increasing concerns about US isolationism.
1/ squat
China set its benchmark loan rates on Monday when investors strengthen more monetary easing from Beijing to help compensate for the headwinds of the large US tariff in the second largest economy in the world.
Some analysts expect a one -year and five -year prime loan rate reduction, which will mark the first cut of Bank People China since October last year.
The tariff between the United States and China is now standing at a satisfactory level of more than 100% and several banks have cut their estimated growth of their China as a sign of victims of the trading war are expected to be taken.
Elsewhere in Asia, Bank Indonesia met on Wednesday and policy makers straddled a good line because of the severity of a darker economic view of the rupiah pinned near the lowest record.
2/ not so extraordinary?
A number of quarterly income in the coming week led by Tesla Tsla and Alphabet Goog can explain how US companies wrestle with the shifting trade landscape.
Elon Musk and Google Parent Alphabet electric vehicle makers are the first of the “Seven Magnificent” company to report quarterly results, with Megacap growth stock under pressure.
AI -related expenditure will be another focus, while Tesla, whose shares are devastated in 2025, are also in the spotlight due to the close relations between Musk with US President Donald Trump.
Investors will look for any insight from the executive to the impact of the tariff, with reports scheduled from large companies including 3M MMM, Boeing BA, IBM IBM, MRK MRK, Intent Intert, and Procter & Gamble PG.
United Airlines Ual on Tuesday warned the downside risk of his financial views if the US economy slipped into a recession – one of the signs of challenges faced by the company.
Risk 3/ Price
PMI Flash April Wednesday also had to give the first hit market from Trump’s tariff chaos.
Trump has delayed reciprocal rates, but imported import levies. The price of the US company input has felt the heat before the latest steps, PMI Canadian services have reached the lowest level of five years.
Expect things to be worse.
The key number that must be watched is the PMI PMI US Input Price Index, What S&P Global, which compiles data, dubbed the first call port for the impact of inflation from tariffs.
It has increased sharply to signify the fastest increase in input prices for US companies in almost two years in March.
Traders expect at least three US interest rates this year, but some skeptical banks that they can cut the risk of inflation at all.
4/Washington calling
Finance officials headed to Washington for the Spring IMF/World Bank meeting – one of the biggest meetings of such policy makers this year.
Work growth is focusing on the meeting. But there is no doubt of trade tensions and a large growth view of growth will be the focus of the Minister of Finance and the Governor of the Central Bank from all over the world also sucking because of the time to face Trump’s administration.
Contour about how Trump sees the role in the future Washington in and cooperation with Bretton Woods institutions such as the IMF and the World Bank may also be clearer.
Among the items that are determined large are the global economic prospects for funds to be released on Tuesday. Implementing Director of IMF Kristalina Georgieva has marked that sweeping US tariffs raises “significant risks”, attractive to Washington and their trading partners to work constructively to reduce tension.
5/ Uncomfortable
Uncomfortable calmness has come down to investors, hoping that the worst turmoil induced has passed.
Wall Street shares have recovered from more than one lowest year, corporate bond spread has returned (a little) and signs of dysfunction in the $ 29 trillion treasury market have subsided after a pause for large tasks.
Trump is considering modifying automatic tariffs.
But with the confidence shaken, the focus is set on Washington, mainly because the aggressive tariff for China is permanent and fears of growth remains.
The dollar is still heading for its worst month since 2022 and global investors have cut US share ownership with a record number in the last two months, said Bofa. Deutsche Bank considers continuous changes in the allocation of foreign investors can produce “large negative dollar flows”.
The market rarely moves in a straight line but when the trend is arranged, it is difficult to turn quickly.
Source: Reuters
