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Rates trigger the sale of shares, possible price increases


The president of the United States, Donald Trump, takes a question from a journalist before addressing Marine One at the White House South Law on February 28, 2025 in Washington, DC

Andrew Harnik | Getty Images News | Getty images

The 25% rates of the president of the United States, Donald Trump, in Canada and Mexico, and an additional 10% in China, are officially instead, which shows that they were not soft simply as a negotiation tactic, as many had thought, and expected. Since then, Canada and China have announced retaliation rates, while Mexico said their response will arrive on Sunday.

Geopolitical trade and international relations can be fractured by the United States, but they could be national consumers and the economy that hurts the most. Business leaders in retail shipping and sale, two industries that serve as a chimney of the economy, expressed concern that tariffs could increase prices, even in a matter of days.

In the markets, investors were also scared. All the main reference points of the US. UU. They collapsed. The profits obtained by the S&P 500, since it set up the wave of the victory of Trump’s victory on election day, have now disappeared. Technological actions have been mistreated since the inauguration of Trump in January. The tax on goods imported from other countries is also beginning to seem one in shares.

What you need to know today

Commitment in rates?
25% rates of the president of the United States in Donald Trump’s assets Imported from Canada and Mexico, as well as an additional 10% tax in China, kicked midnight on Tuesday. The United States Secretary of Commerce, Howard Lutnick, said Tuesday that Trump “probably” will announce The commitment of the rate agrees with Canada and Mexico As soon as Wednesday. However, Lutnick seemed to rule out the possibility of Trump raising the rates completely.

Price increases probably, companies say
Trump’s tariffs could increase prices in days, they said business leaders. “The short -term effect of any tariff is clearly inflation.“said Charles Van Der Steene, president of North America for the Maersk shipping giant, while Target CEO Brian Cornell Price increases in the next few days.” This is causing fears of “stagflation” In the economy of the United States, in which prices increase but growth slows down.

Markets fall on tariff fears
Investors sold US shares on Tuesdayscared by the effects of tariffs on the economy. He S&P 500 lost 1.22%, the Dow Jones industrial 1.55% fell and the Nasdaq compound It retired to 0.35%. From Europe Stoxx 600 The index fell 2.14%, its Largest daily loss since August. The Stoxx 600 basket of automotive actions, one of the sectors that is expected to be more affected by the new tasks, fell 5.7%.

The profits of the ‘Triunfo’ elections
The “coup of triumph” in the markets has disappeared. After falling on Tuesday, the S&P 500 closed to 5,778.15, below the level of 5,782.7 on election day, November 5. This means that the index has lost its profits after the election. He Russell 2000 The small tapas index, which jumped 5.84% on November 6, has dropped approximately 8%. Meanwhile, Technological actions have collapsed more than 7% Since Trump took office in January.

(PRO) Look in Europe in search of capital: analysts
Europe is the place to be for capital investors, according to analysts who marked growing valuations and political risks in the US market as inconveniences compared to the most stable geopolitical environment in Europe. Europe’s market and economy also offer Several other advantages About that of the United States

And finally …

Analysts say that tariffs, geopolitical uncertainty and economic concerns influence FX markets.

Peter Dazeley | Getty Images News | Getty images

These safe refuge coins have charm about the US dollar amid the volatility of the Trump regime, analysts say.

The geopolitical developments of this month have seen US tariffs about Canada, Mexico and China enter into force, the reported pause of US President Donald Trump about military aid to Ukraine, the softest economic data in the United States and European leaders who promise to increase defense expense. David Roche, strategist of the quantum strategy, said such events could see the green green as the safe fx market shelter.

Jane Foley, director of FX’s strategy in Rabobank London, told CNBC by email on Tuesday that she expected the British pound and the Japanese Yen to be winners in the current environment. Dominic Schnider, Chief of Global FX and Basic products of UBS Global Wealth Management, said that “investors can change more significantly towards higher performance coins”, such as the Australian dollar and the British pound.



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