(Repeat to solve the head format. No changes to text) April 4 (Reuters) – The route on Wall Street continued on Friday, with the Nasdaq earning a bear market classification after China imposed fresh rates on all US goods in response to the Trump administration’s levies, which increase a worldwide trade war. The S&P 500, Dow and Nasdaq closed more than 5% each. Losses accelerate after Federal Reserve chairman Jerome Powell said the new rates of President Donald Trump are ‘bigger than expected’, and that economic falls, including higher inflation and slower growth, are likely to be, and indicate that it is ultimately difficult decisions for the central bank. The global stock selling sent money floods in low-risk assets such as US government bonds, even if the gold haven gold returned from Thursday’s record high, along with a further slide in crude oil brought by the fear that a trade war would cause a global recession. The US Treasury returns fell sharply on Friday after China’s retaliation against Trump’s tariff plan that rejected the markets, although declines were curtailed after a solid US job report. Quotes: David Seif, chief economist for developed markets in Nomura in New York “The market is still consuming the great uncertainty and I also think it consumes the fact that Trump and Powell have made it clear that the cavalry will not immediately cause things to reflect.” “We’re far from a Trump pit. Let’s leave it there. And we are also quite far from a lined well, although a Trump pit would of course be much more powerful, because Trump can actually pull out the rates. All the Fed can do is lower rates, which is not a wonderful tool for what’s going on. ” Mike Mayo, Bank Analyst, Wells Fargo, New York “I think this market selloff is a new chance for the banks to show how resilient they have become in terms of capital, liquidity and deriscuent since the financial crisis. They have already showed the resilience after the silicon valley and During the Pandemic. But when I consider its scale, there is a yellow light and we must be attentive. In the financial crisis, it is years of leverage and excessive mortgage loans. Now it’s different, it’s a deliberate decision to have short -term pain for long -term gains. Jeff O’Connor, Head of the Market Structure, Liquidnet, Summit, NJ “Tariff security is likely to rattle markets in the foreseeable future. Important economic indicators and market sentiment show concerns about stagflation and recession. – is the Tariffies – their unimaginement and in -depth consequences – the tariffs – their incompetence keeps participants on the rand. Rosen, Investment Officer, Angeles Investments, Santa Monica, California “The whole idea of rates and trade policy was such an integral part of Donald Trump’s psyche, I do not see it. He will comment on saying that he will moderate his positions, but I just think he is fundamentally a strong believer in rates. ” There is some technical support of about 5,000 on the S&P, will not be surprised to see it, and then we will see where it is going. But that a $ 4 for your coffee will get at Starbucks. It is a response to a bad, incoherent trading policy that will have nothing but negative implication for our economy and the global economy. So markets fit it and sell off. What this means are slower economic growth, recession risks and increased inflation. “Brian Bethune, economist, Boston College, Newton Massachusetts” if the rates came into effect, you would have at least a chance that businesses could restore their plans. That whole business planning process was thrown into disarray. The market says: There is no way to change, not even as flexible and resilient as the US business. You put so many sandbags on the balloon, it will come back to earth with a down. “Joe Rinaldi, president and investment officer, Quantum Financial Advisors, Rockville MD” Powell’s position is very middle of the road, benign. However, I think they will not have a choice but to lower the rates at least once before the end of the summer, because the global economy will continue to slow down, right? This is not going to happen immediately, but you will probably see it in June’s numbers and July’s numbers that we gather. And I assume these rates remain in place for several months. Now, if one, or two, or three major trading partners – Taiwan, Japan – do an opposite and say, ‘Here’s the white flag, I surrender. What do you want? “I think you’ll see this market turning around within a day. So, I don’t think it’s wise to liquidate at this time () I mean unless you have to, and you have the margin call. “Benjamin Ford, G10 FX strategist, Macro Hive, London.” There was only a handful of time when risking got worse than it was at present – one was during the big financial crisis, the other was in the Covid. “” Not all countries are to go. pipeline, but they didn’t go on it at all. What they could possibly do is a package to support the broader economy. Long -term, this will really amount to who is repaying and who just wants to support their economy. ” Latin America is the most beautiful place to invest now – both in how cheap stocks are, and from a mortgage perspective (investors) can pick up incredible tariff differences. ‘Carol Schleif, Main Market Strategist, BMO Private Wealth, Minneapolis, Minnesota’ The succession of today is Big Push Down is a lack of staying for a stay for accommodation for staying for a stay for staying for a stay for a stay for a stay. People have moved to the sidelines to see how the initial negotiations / retaliation is – and do not know how to determine how far off “enough” is, “no one wants to increase the long positions on the weekend with more rates kicking in and the potential for more headlines over the weekend. Better to keep off and wait until Monday, as soon as everyone has a chance to cool and re -judge.” “Kevin Philip, partner, calls Air Investment Advisors, Los Angeles” When sales sellers are violent, it increases the likelihood of structural issues that can be submitted, but I still don’t see it .. leverage is generally pruned before it “” With us searched this morning … Parade of telephone calls and visitors to the White House “” I don’t think (Trump) is going to be very tolerant of the massive stock market decline-he will see his popularity tank, and it will endanger his entire agenda “” If he did not intend to negotiate, it would be a complete disaster for the low-income people, which would be a short time. If he adjusts again “” I see nothing of this if he does not come up with offers or reasons to change course “Peter Cardillo, chief market economist, Spartan Capital Securities, New York” (Federal Reserve Chairman Jerome Powell), really says nothing new. He says that the incoming data is still solid, and that the labor market is in balance. “And of course there is a greater risk now that we have more clarity on rates. But he also mentioned that inflation tariff inflation should be temporary. He didn’t really change his position.” “I think his comments will be disappointing for those who believe the Fed will enter soon.” Gene Goldman, Chief Investment Officer of Cetera Investment Management, El Segundo, CA “said the effects of rates would be greater than expected. He also refers to the fact that inflation will be less temporary. He is really worried about inflation. ” This indicates that the Fed will not lower as much as the market hoped. When he reads between the lines, he says that if the economy delays, he will delay it because he is more concerned about inflation at this point. The market adapts to this. “Chris Scicluna, Head of Economic Research, Daiwa Capital Markets, London. Lower Binding Returns and Vlei Yield Curves are not what banks want to see. Policy normalization in Japan looks less likely and it is an unfavorable environment for banks. There is the concern that the trade war killed the Japanese reflection – so in short, it is an expression of the slowdown in Japan’s economy that is expected to arise as a result of rates. Chief Asia Economist, HSBC, Hong Kong “The world has changed, and few economies refute these changes as strong as in Japan. A weaker dollar and threats of a global trading recession have put a real dive in Japan’s reflection prospects. As the expectations of BoJ rate hikes are pushed out by the market, rates and stock markets inevitably respond to a new reality. “The obstacle for tariff increases by the Central Bank of Japan has ruled on the back of the US tariff increases, but the BOJ has not yet been counted out, with a prolonged price pressure in Japan still keeping financial officials in the game.” Sean Taylor, Cio, Matthews Asia, Hong Kong “The decline in Japanese banks has more to do with the fact that they did well on the hope that BoJ hikes were up to 1% in the next 12 months – so two more rise. Michael Makdad, senior stock analyst, Morningstar, Singapore “There is a bit of a binary scenario: either US rates remain as announced or reality does not appear to be as extreme. Jon Withhaar, Senior Portfolio Manager, Pictet Asset Management, Singapore “Banks in Japan are caught up in the crossfire of taking the tariff increases that coincide with the market that was a greater chance of a global recession. Construction is very fast. Hogue, Dhara Rana Singhe and Amanda Cooper)
Quotes markets extended dive after Powell said Fed to wait and see on the rates
