The asian and European markets recorded out gains this Tuesday, covering up some of their recent large losses. though low confidence and high uncertainty saw gold hit another high record as the US PRESIDENT (DONALD TRUMP) prepares to announce broad tarriffs.
Most investors have been rushing to prepare themselves for the US PRESIDENT'S "LIBERATION DAY" on Wednesday, when he threatened to impose levies on "all countries" accusing them of unfair trade practices or simply ripping off Americans.
Trump said he would be very kind and fair when revealing the tariff on Monday, but he shared little details on who would be affected. this added to uncertainty in the markets, while stocks faced pressure as recession fears grew.
Last week, Trump threatened to impose a 25% tariff on cars and car imports, adding to the tense mood. Some analysts warned that market volatility would likely persist as governments respond - either by trying to appease Republicans or retaliating with their own measure.
On Tuesday, Vietnam said it would raise duties on many goods, including cars, gas, and some farm products. Some people on Wall Street think April 2 might not be as bad as expected, which could lead to a bounce-back in risky investments, said Jose Torres, a senior economist at Interactive Brokers. But others worry the economy can't handle such a big test, as more households struggle to keep up with their spending due to growing problems.
After series of massive lossess in the stock market, there was a slight recovery on tuesday. Tokyo, which has been most affected because of major sell-offs of car companies like Honda and Toyota and many others, saw the slight increase, along with other markets like Singapore, Bangkok, Hong Kong, Mumbai, and many others. London and Paris also opened higher the bounce back was as weak as that in New York.
The S&P 500 rose on Monday but closed lower, marking its weakest point since 2022.
We will keep thinking that markets including Asia forex are underpricing the magnitude of these tariffs, and our North Star is for Trump to be more aggressive than many think possible in a significant structural change to the post-World War II global order, beyond the day-to-day policy whiplash and uncertainty,” quoted or stated by Michael Wan at MUFG.
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