US assets continue to withdraw amid Wall Street disorder
The prices of US and dollar bonds dropped at the end of a chaotic weekend, threatening the increase in the trade conflict between the United States and China with the global economy and the financial system. The shares have decreased, amid the growing fear of foreign investors of US assets. The fluctuations in Wall Street have continued amid concerns about the rapidly developing commercial policy of President Donald Trump, which shakes markets, companies and consumers, and increase inflation forecasts to the highest levels in decades. The S&P 500 (S&P 500) fell by 1%. The fear of delaying growth led to the fall of the dollar in its lowest level in six months. US Treasury bonds have registered its worst week since the liquidity crisis in the 2019 market of re -purchase agreements. ‘The US markets have not moved over the past two weeks, in relation to its traditional status as an adult safe haven’, and ‘the problem is not related to the stock market, but rather international investors. They act as if they were in a poorly emerging market. We see a sharp decline in the value of the dollar, and we see a threat to staying in the market. ” Especially regarding expectations for economic growth and profits and how the markets will act as a result. This explains the continued fluctuation of assets. Economists in the Goldman Sachs group on Wednesday issued their expectations that the recession took place in New York before one hour, before withdrawing after a few minutes after Trump stopped many rates he imposed. With customs duties reaching the levels that are expected to paralyze most of the largest global economies, it is now increasing that the economic conflict can extend to other relations. China responded to the latest customs duties that Trump imposed by increasing the customs tariffs on all US goods, and mocked the actions of the administration and said it was no longer worth moving. Fruits of American origin and despite all the serious fluctuations, the shares got big flow this week, but for Bank of America it is not a sign of the high appetite for risks. The equity funds received investments worth $ 48.9 billion during the week ended April 9, according to “EPFR Global” data, but this step was driven by a large $ 70.3 billion flow to ‘inactive’ funds, while ‘active’ funds suffered funds below $ 21.3 billion. Michael Hartnet of Bank of America recommended investors to use the S&P 500 index to sell until the Federal Reserve intervened and reduced the United States and China the seriousness of the World Trade War. The strategic expert said that customs duties and the resulting market interference have exceeded the United States to an ‘US rejection’. It is also recommended to sell shares to the open – until the “S&B 500” index reaches 4,800 points – and it is advised to buy the Treasury bonds for two years. Hartnet wrote in a remark that the high income of bonds, decline in equities and the weakness of the dollar “is going out of the global origin, which can force the manufacturers of monetary policy to intervene.” But investors need to sell high -risk assets. ‘