Relief Rally failed when traders try to understand Trump’s U-turn
Stocks floated on Thursday and rebounds in the dollar loses attractiveness when investors try to filter the noise of Trump’s administration and their changing attitude to the federal reserve tariffs and leadership.
During the last week, US President Donald Trump rained down the attack on Fed Chair Jerome Powell then withdrew the call for his resignation, and made investors no wise in the main situation of tariffs in China despite a lot of headlines.
Trump’s government will see a decrease in the tariffs of imported Chinese goods waiting for talks with Beijing, a source told Reuters on Wednesday.
Minister of Finance Scott Besent said the high tariff between the US and China was not sustainable, but also said such a step would not come unilaterally, echoing comments from the White House spokesman Karoline Leavitt.
The Chinese Ministry of Trade said that on Thursday the United States had to lift all the unilateral tariff steps against China if “really” want to solve the trade problem.
It all helped us shares and dollars to unite on Wednesday, but the fading movement on Thursday, with a benchmark of European and Asian stocks, which were around 0.6% lower, and the S&P 500 were down 0.5%. (EU)
The dollar is also weaker, from 0.6% in Japanese yen and Swiss francs at 142.5 yen and 0.826 francs, while euros rose 0.5% to $ 1,1375.
“The pantomime policy produces the pantomime market,” analysts said in Rabobank in a note.
“This has been fully proven in the price action that is oscillating in the last session with Trump ‘he is behind you, oh no he isn’t!’ The approach to regulating not only encourages market reversal but can even be said to cause the same driver to provoke two optimized reactions that are diametrically optimized.
Treasury which stands longer as Trump’s reversal in Powell seems to alleviate threats to the credibility of Monetary and US fiscal, with the result of 10 years 3 basis points lower at 4.36%.
After the volatile period, the benchmark is set for the third day in a row -according to the movement that is sufficiently muted.
The market gives a slightly more than 80 BPS price of interest rates in December, although with the level of US tariffs it is still uncertain, especially the impact on economic growth and inflation, traders prepare for further swing there.
Nikkei Japan is a rare advantage, up 0.5%. Reuters reported that the tariff negotiator Ryosei Akazawa made the final arrangement to visit the United States starting April 30 to hold a second round of talks with his colleagues.
Slightly shocking positive economic news, German business morals suddenly increased in April, a survey showed on Thursday.
Income is also released in the US and Europe, and offers mixed images.
Dry Gucci-Parent shares (EPA: PRTP) dropped 6% after reporting a greater decline than the estimated income of the first quarter.
Alphabet income (Nasdaq: Googl) will mature on Thursday, after we close.
Elsewhere, the price of steady oil after the decline in the previous session because the source said OPEC+ would consider accelerating the increase in oil output in June.
Brent Crude Futures rose 0.85% to $ 66.67 per barrel, while US crude oil also rose 0.9% to $ 62.83 per barrel.
Gold returns to the highest record Tuesday, lasting 1.3% at $ 3,331.2 per ounce.
Source: Reuters
