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The president of the United States, Donald Trump, signs executive orders at the Oval Office of the White House on March 6, 2025 in Washington, DC. President Trump signed a series of executive orders, including 25% of the tariffs for all goods that comply with the USMCA commercial agreement.
Alex Wong | Getty Images News | Getty images
Global markets have been shaken by volatility in recent days, since investors try to stay ahead of the tariffs of US President Donald Trump.
As finally the white house taxes on Canadian and Mexican goods finally It entered into force this weekCapital markets worldwide were shaken. The stocks on Wall Street were sold on ThursdayWith radical losses that reach all the main indices and the Nasdaq compound slide towards the correction territory. European and Asian The actions have also seen Broken trade around Trump’s rates ads and policy reversions this year.
The volatility of Thursday took place even when Trump offered concessions to Canada and Mexico through delaying some of the levies until April 2.
The strategists told CNBC on Friday that investors should prepare for more changes in the markets derived from Trump’s commercial policies, given the president’s apparent tendency to change tactics.
“Volatility will stay with us,” Philippe Gijsels, BNP Fortis strategy director told CNBC. “The headlines continue to flow and are in all possible directions. In addition to geopolitical uncertainty, there is still massive economic uncertainty with the United States clearly slowing down … the situation in Ukraine: are we going to have a high fire or things will intensify? (Then there are) rates, in which the ‘strategy’ changes every five minutes.”
Market Environment of ‘Rieso on Risk off’
Jon Cunliffe, head of the JM Finn Investment Office in London, agreed that volatility was increasing with Trump in the oval office, and the trend could be here to stay.
“For 2023 and the period prior to the electoral campaign, the annualized volatility of 100 days for the S&P 500 was as low as 10%, and now we headed for 15%,” he said by email. “Trump 2.0, it is likely that this high level of volatility continues, with the tendency to retreat in policy initiatives that create a market environment of risk of risk outside ‘.
Trump has so far He pointed to the “globalists” For the last nerves of the market, defending that the United States is “recovering things that have been removed many years ago.”
However, analysts have previously warned that the United States could also suffer Trump’s rates plans, with US tariffs on imports that probably bleed at higher prices for US consumers. Countries attacked by taxes have also taken or threatened punitive measures that could restrict their demand for US exports. Until now, Trump’s duties on Canadian and Mexican goods, which come in addition to New 20% rates of the United States in China And next to Threats From Trump to the duties of EU’s assets, he has caused him to talk about retaliation steps of Canada and Mexico leaders. China also has responded With their own tariffs aimed at US assets, with officials warning They are willing to fight “any kind of war” with the United States.
“The political uncertainty and the flow of tariff news, which are combining to increase concerns about the image of the growth of the United States and the perspective of a commercial war, it is likely to maintain high volatility,” said Thomas McGarrity, head of RBC Variable rent of RBC Wealth Management, to CNBC by email on Friday.
“Checking this is that US assets are very well owned, so the unwinding of the extended position is also contributing to the weakness of US actions, after an exceptional period of returns in the last two years.”
An improved image in Europe, particularly in the light of an impulse to Fiscal Policies Reform and Encourage EU defense spending in the EU – I was also playing in some rotation within the variable income markets, McGarrity said.
Asian and European markets fall
Wall Street seemed quieter before Friday’s negotiation hours, with us Stock future sprouts higher As investors expected key job data from the world’s largest economy. However, Asian and European markets Both saw the prices of the shares fly on Friday when the regional investors digested the latest commercial developments in Washington.
“Do not worry if you feel overwhelmed, you are not alone,” said the analysts of the Bank of America office in London in a note to customers on Friday morning, marking that the “Furious News Flow” in recent times had had this impact on investors.
“The clients we met on our marketing trip this week reported that they felt overwhelmed by the rapid succession of high profile macro news,” they said. Both economic data signals, such as the Fed of Atlanta GDP tracker Negative – and the mixture of policies, including Government Government Drafters And the growing commercial tensions, contributed to this, said Bofa analysts.
– Kevin Breuninger, Brian Evans and Alex Harring of CNBC contributed to this report.