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Expect more volatility, strategists warn

US President Donald Trump signs executive orders at the White House Oval Office on March 06, 2025 in Washington, DC. President Trump has signed a series of executive orders, including raising a 25 % tariff for all compatible goods under the USMCA Trade Agreement.

Alex Wong Getty Images News | Gety pictures

Global markets have rocked fluctuations in recent days, as investors are trying to stay ahead of US President Donald Trump’s definition policies.

As the leader of the White House leader for a long time on Canadian and Mexican commodities recently It entered into force this weekShe shook stock markets all over the world. The shares were sold in Wall Street on ThursdayWith sweeping losses that reach all the main indexes and the nasdaq compound sliding in a correction area. European and Asian The stocks also witnessed Trading volatile on Trump’s introductory ads Politics declined this year.

The fluctuation occurred on Thursday, even when Trump made concessions to Canada and Mexico by Delay some of the drawings until April 2.

Strategists CNBC told Friday that investors should prepare for more fluctuations in the markets arising from Trump’s commercial policies, given the president’s clear tendency to change the path.

“The fluctuation will remain with us,” Philip Gigsel, chief strategy official at BNP Paribas Fortis, told CNBC. “The headlines continue to flow and go in all possible directions. Besides geopolitical uncertainty, there is still a state of massive economic uncertainty with the United States clearly slowing … the situation in Ukraine – will we get a ceasefire or will things escalate? [Then there’s] The definitions, on which the “strategy” changes every five minutes. “

Market environment “risks on risk”

John Conif, head of the JM Finn Investment Office in London, agreed that the fluctuations were raised with Trump in the Oval Office – and the trend here may be to stay.

He said via e -mail: “During the year 2023 and the rest in the election campaign, the annual volatility was 100 days for the S&P 500 low to 10 %, and we are now heading about 15 %,” he said. “Under Trump 2.0, this high level of volatility will continue, with a tendency to retreat from the policy initiatives that create the” risk “market environment.

Trump has yet The finger referred to “globalization” For the latest tensions in the market, the defense of the United States “regained the things that have been taken from us several years ago.”

However, analysts have previously warned that the United States may also suffer from Trump’s tariff plans, as American duties on imports are likely to bleed to the high prices of consumers in the United States. The countries that are targeted by fees or threatening punitive measures can also be taken on the exports of the United States. To date, Trump duties on Canadian and Mexican goods – which come in addition to 20 % of the new definitions of the American definitions on China Besides Threats From Trump to the duties of a slap on the goods from the European Union – I paid talk about the revenge steps from Canada and Mexico Leaders. China also Respond With its own definitions targeting American goods, with officials warning They are ready to fight “any kind of war” with America.

“It is possible that Thomas McGareti, the head of the RBC Wealth Manegement, will maintain CNBC via email,” the uncertainty in politics and the flow of customs tariff news, which combines concerns about the image of growth in the United States and the possibility of a trade war, “said CNBC by email.

“Under this is that the American assets are very well owned, so the relaxation of the extended position also contributes to the weakness of American stocks, after a period of exceptional returns over the past two years.”

A copy of improvement in Europe – especially in light of leadership to Reform of financial policies and Stimulating defensive spending of the European Union He was also playing in some rotation in the stock markets.

European Asian markets stumbled

Wall Street looked quieter before trading hours on Friday, with us Future stocks rise higher While investors are waiting for the main job data from the world’s largest economy. but, Asian and European markets Both saw stock prices on Friday, when regional investors digested the latest commercial developments from Washington.

“Do not worry if you feel exhausted – you are not alone,” analysts at the Bank of America office in London said in a note to the customers on Friday morning.

They said, “The customers who met on our marketing journey this week stated that the feeling of exhaustion is a quick caliphate for prominent total news.” Both economic data signals – such as the GDP in Atlanta Fair Fall in a negative area – The mix of politics – including Comprehensive government job discounts Bofa analysts said that the escalating trade tensions – were contributing to this.

KEVIN Breuninger of CNBC, Brian Ivans and Alex Harring contributed to this report.

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2025-03-07 13:31:00

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