Asian stocks open this week's trading to a decrease in demand for safe ports
The shares in Asia, the returns of treasury bonds, and the dollar fell on Monday, with increasing concerns about the durability of the US economy, affecting the investor’s appetite for risk. The Asian stock index has decreased, and the S&P 500 Futures Futures fell 1.1%, and the Nasdac 100 index, which is dominated by technology stocks, has decreased. The yields of US Treasury bonds have also dropped through different deadlines, as investors have gone to safe ports such as bonds. This shift to safe assets contributed to the rise of the Japanese yen and Swiss franc, while the dollar index continued its decline in the sixth consecutive session, which is the longest range of losses in a year, with a decrease in trust in US economic performance. At the commodity level, gold has risen with an increase in hedging, while oil has dropped to the lowest levels since September, influenced by poor economic data from China, which strengthened the negative expectation of demand. The US economy is facing increasing pressure that increases concerns about the slowdown of growth in the world’s largest economy, after customs duties have been imposed on the major commercial partners, high unemployment and federal sector discharge, which could lead to a decline in economic performance that exceeded China and Europe for several months. Federalers pointed out the increasing risks of delaying the US economy, while President Donald Trump described the economic situation as a ‘transition period’. “It has become difficult to read the features of the economy amid the blurring of the second Trump -era and customs duties. It is not surprising that the stock market position is to avoid risks, leading to the correction of prices,” said Ed Yardeni president, investors have very likely to buy short -terms. Year expected by the middle of the first time, and that the federal reserve would expect the federal reserve. The reduction of interest rates by May, with the aim of preventing the economy from deteriorating. This transformation is a sudden turn in the bond market, where the strong US economic performance, compared to the global slowdown, has been the dominant factor over the past few years. Mary Dali, head of the Federal Reserve Bank in San Francisco, warned that increasing uncertainty could delay demand in the US economy, but stressed that it did not require a change in interest rates. The Federal Reserve, Jerome Powell, has acknowledged the increase in fog over economic expectations, but he expected the road to continue to reach a 2%inflation rate, indicating that the high prices that may be temporary due to customs duties may be temporary. In light of these fluctuations, JP Morgan Chase analysts, led by Fabio Bassi, wrote: “We become a more cautious situation towards high -risk assets.” They pointed out that the escalation of political uncertainty, fluctuations about the possibility of a ceasefire between Russia and Ukraine, and the unprecedented financial plans in Germany and the European Union can cause a serious period of volatility, with sharp adjustments in the investment centers. Are Trump back from Customs duties? The Wall Street strategy is still discussing whether the Trump administration of customs duties can decrease with the continued decline in markets. The prevailing idea is that Trump can give up policy that negatively affects the stock market, which he considers an indication of his economic success. Some investment companies have drawn scenarios to determine the level of decline in the “S&P 500” index that Trump can drive to change course, as this level in the market is known as “Trump Put”, citing the options contracts that investors use to protect against losses. Kyle Roda, chief analyst at “Capital.com” in Melbourne, said that the unconventional approach of President Donald Trump in economic policy shakes the market’s trust, adding: “Trump actually focuses on major structural changes in the economy, even if it comes to the expense of the growth of short term.” Roda pointed out that this trend is completely contrary to the prevailing belief in the markets, that there is a ‘financial safety network’ known as ‘Trump Put’, which was supposed to always support the stock market. On the other hand, the European markets and the euro received a positive boost after Germany moved away from the financial austerity policy, as well as strengthening the region for its defensive capabilities. The ‘Euro Stoxx 50’ index indicated a strong opening on Monday, reflecting investor optimism about financial and strategic changes in Europe. The slowdown in the growth of jobs in America … and inflation in China has become a shrinkage of US work growth over the past month, as the economy added 151 thousand jobs in February, after a review of the previous month, released on Friday. The unemployment rate has risen to 4.1%. “The job report has become weaker than expectations, which are worrying because it does not reflect after the recent discount in government opportunities,” said Glin Smith, the investment officer of “GDS Wealth Management”. In Asia, consumer inflation in China has dropped more than expected to fall below zero for the first time in 13 months, reflecting the continued deflationary pressure on the economy. “Chinese inflation data has not helped to increase market confidence, but it can force the bank of the Chinese people to provide more motivation,” says Tim Water, Sidney’s chief market analyst in “KCM Trade”. On the other hand, China announced the imposition of re -viewing duties on imported seed oil, pork and Canadian seafood in a new escalation of the trade war. Canola prices have dropped with the maximum granted on the stock exchange. In Canada, Mark Carney won the Premier’s presidency to become the new leader of the country.