The US Stock Markets kicked off the week with sharp Selloff and which is rattled by renewed trade Uncertainty and mountain geopolitical tensions
The S&P 500 Now has erased $2.5 Trillion Since the 9th April high after 90 days Tariff pause while Stock Markets awaits trade deal Now Japan Just Said “They Will not just conceding In US tariff” Fall
Possible Reason for Market Fall
On April 16th Bloomberg published the article in which they claiming Trade negotiation with japan are underway and Trump adminstration officialls claimed trade deals were being discussed with 50+ countries and This is the reason why Stock market rallied sharply in the last 5-10 days
When this news cames, that is trade deal with japan is emerging that time S&P500 rallied from 5,250 to 5,380 but when news cames China issues warning not co operates USA since then S&P500 seeing sharp Fall
Last night China is escalated trade war again and China warned that countries who co operates with USA in ways that compromise their interest will be retaliated against and outcome of this means countries must choose USA or CHINA
Main Twist is here After 5 days of Japan trade deal headline the news came out the morning which is covered by Bloomberg in which they reported 'Japan's Prime Minister said Japan Will not conceding with USA' further he says “If Japan concedes everything, we won’t be able to secure our national interest,” Ishiba said.
The reality is that stocks rallied over 10% from their recent lows on the basis of one catalyst which is 'Trade deals will be reached'.It is becoming increasingly clear that trade deals will take time and Just now, Mexico's President said a deal was not reached in talks with Trump today.
This was not enough On top of this, President Trump continues to publicly attack Fed Chair Powell.President Trump calls for "preemptive [rate] cuts" and claims “there is virtually no inflation.”Trump is now calling Fed Chair Powell “Mr. Too Late.”Gold and Bitcoin are reacting to Further President Trump tweeted that Even more unsettling for markets was President Trump's “non-tariff cheating” list posted yesterday.The first form of "non-tariff cheating" is currency manipulation.Trump is effectively accusing countries of currency manipulation, which sent gold prices even higher.
Gold and Bitcoin are now aligning for the first time in months.Since April 7th, Gold is up over 15% while Bitcoin is up over 12% and might be investors booking profit in Equities and investing into safe assets
Why is this happening?
Markets are pricing-in US Dollar weakness and more instability and Bonds are no longer a preferred safe haven.
Disclaimer:
The information provided in this blog is for informational and educational purposes only and should not be construed as financial or investment advice.
