The stock market has returned, the bulls have returned to the crowd, the dip is buyer, and the US president has returned to his astronomical prices (most).
The tariff gate may be at a pause for now, but there is still uncertainty whether it is in 90 days or soon, looking at the incredible frequency with which it has yet changed the tech.
Three reasons outside the stock market are that Donald Trump eventually had to back track – two of them who applied the pressure – but the third, once again, was Actual Deciding the element in the game.
Oil
Falling in oil, in isolation, is not a terrible or unwanted thing in the eyes of some nations. Of course. Cheap fuel is good for users, but it indicates a wider problem.
With the cost of doing business through revenue, industry production and demand will decrease, resulting in less economic growth.
In the United States, in the United States, oil prices will also reduce the production of shell producers, CNBC. Meanwhile, the Bank of America estimates more than one million barrels daily as a result of the trade war, which will further reduce the price once again.
Original economy?
Obvious, yet notable: maybe Original economics Here played a role. First, much has been made from the provocative simplicity formula used to calculate the amount of tariffs, in which we will not go here, but perhaps the “economic bullying” (as China said) had to take notice when the big potential hooligans stood.
Donald Trump is a rich man, but nowhere near the richest. Its $ 5 billion (9 3.9 billion) is not enough to break the billionaire index of Bloomberg, which is among the 500 richest people in the planet. Are In this list
For example, the bill is worth more than $ 7.5bn. Although he supported the prices as a reasonable move, he took his repetition and his purpose to the extent that he would cause “economic nuclear war against every country in the world”, and would repeatedly demand a pause before it arrived.
Jamie Demon is one of the biggest voices in the financial sector, and JP Morgan’s CEO expressed concern over the long -term impact of the tariff, and also said that he would play an important role in recession.
In the meantime, Elon Musk may not be directly opposed to the US president, but in 2025, the loss of more than $ 100 billion in his personal fortunate so far may not be easy for the richest person on the planet.
“Trump is now gaining fame for lack of floping and permanent economic policy,” said Marcus Brooks, chief investment officer of Quelter Investors.
Bonds
Finally, but the most important thing is what it is definitely Really Forced to change.
Generally, when the stock market decreases, bond prices increase. This is a safe haven, assurance is that when companies do not pay for share prices, countries will do: bonds are government loans, which pay interest and return the initial capital at maturity.
Except this time, the American Treasury (what he calls the bond) dropped.
You can buy treasures in different timeframes. Production – Payment amount – is the opposite to the price, so when the price decreases, the output increases. Production of ten -year -old US Treasury Bonds ( Traditionally safe shelter) increased by 4.0 percent to 4.5 percent in three days space, which is a huge increase in relative terms in a short time.
This number is small in isolation, but they have many indications of the US predicted economic stability and the money they have to pay on their debt – which is in trillions of dollars.
Hedge funds are mostly suspected that they are behind the bond market riots, selling government loans and consequently, Pick The 30 -year -old loan costs five years.
“Particularly the long -term US government debt is recovered, which can help focus on the minds of the White House – even if they have returned from their height,” said AJ Bell’s investment director, Russia Mold.
“This shows that the US is still concerned about the trade policy, and while the 90 -day interval is a welcome news for stock, the lack of long -term explanation over time can also be a problem.”
Increasing inflation is one thing, but it is another thing to put this burden on the American people, and a war Trump – as wasn’t even with others – not easily won. So there is a break, the production of ten -year -old bills is about 4. 4.3 % retreating … and the wider uncertainty of the subsequent things has returned.
But at least this is no longer eliminating all markets.
