- Global stock markets have made solid gains this morningCreate markets for us for another possible day – positive – Futures Contracts on the S&P 500 rose 0.3 % this morning, pre -opening bell. But the inherent news was a concern about the increasing weakness of the US dollar against foreign currencies.
Elegant India 50 It was more than 2 % today He hopes to be in a good position To take advantage of the American supply chain that is moving outside China. The Indian market is the first main indication of erasing losses from President Trump’s trade war.
The gains came after a good day in the United States on Monday. the Dao More than 300 points climbed on Monday as the markets continued to gather on the possibility of customs tariff exemptions. This translates into an increase of 0.78 %, while S & P 500 It increased by 0.79 % and heavy technology Nasdak 0.64 % jump. One of the most prominent things was in the tin, which increased by approximately 5 %.
However, the S&P still decreased by 8 % of the year.
This is a snapshot of today’s work from luckThe CEO daily:
- Futures on S&P 500 0.3 % rose this morning.
- Tobics Japan It was 1 %.
- Stoxx EUROPE 600 It was 1 % in early trading.
- And ftse 100 It was approximately 1 %.
- ChinaTwo main indexes were flat.
- Hang Kong Hang Singh It was 0.2 %.
- Elegant India 50 It was 2 % rising.
However, it is not every blue sky and normal sailing
US dollar It fell for the fifth consecutive day, as followed by DXY, an indicator representing a basket of major commercial currencies. The dollar fell approximately 8 % this year. To put this in its correct perspective: in late 2022, the dollar reached nearly powers with the British pound, but today the pound bought $ 1.32.
The weakness of the dollar is a sign that, in one way or another, investors transfer money from the United States
The exits were so severe that some analysts began to doubt the role of the dollar as the “reserve currency” in the world.
“At its heart, the US dollar’s weakness reflects the” structural “declaration of the” structural “to” risk “when the United States is now viewed to dismantle the international trade system and the capital flow system that it created itself. If the United States itself cannot be relied upon as a reliable port in a turbulent world, how can the United States prefer?” Macquarie Thierry Wizman and Gareth Berry analysts wrote in a recent memorandum of customers. “The position of the US dollar as a backup currency has always been part of the” agreement “and the” application “part in light of the stability of American institutions.”
Gossip around the United States that behaves like the “emerging market” will not disappear either. “Experienced investors will recognize this style. We usually see him in the emerging market crisis when investors lose confidence in the country’s government and his ability to serve his debts. The result is a capital trip and a quick process of government bonds while increasing the risk premium,” Joachim Klement wrote from Panmure Liberum yesterday.
The American bond market is already struggling with the departure of the dollar
Corporate bond market with high return He has Earth to stopWith a zero version since “Tahrir Day” Trump. The private stock sector relies heavily on unwanted debts to finance acquisitions, and the freezing of the cash lifestyle of the most dangerous companies that cannot survive without financing debt.
China may sell American bonds. Not clear What is happening, exactly. China maintains a lot of cabinet – so selling it will harm Beijing to Washington. After saying this, the destruction of the American bond market is a good way to fight a commercial war.
This story was originally shown on Fortune.com
