4.12 - USD is causing a lot of troubles
Today it becomes more and more clear – the situation in the world becomes more and more strained and more and more difficult. There is no certainty of anything right now and it is clearly seen by today’s performance of the markets. Even without looking at USD chart, it becomes clear – American markets are out of luck for the day as USD and American stocks are declining. All because the shock from yesterday’s Trump’s decision not only hasn’t worn out, but got deeper.
Let me explain. Yesterday Trump said that trade deal with China might not be signed until after presidential elections 2020. And we still have almost a year to go. This, of course, scared traders and investors, as we understand – in 10 months the situation might get proportionally worse. There is quite a lot of time for Trump to impose new trade tariffs on China and further damage the economies of both of the countries. So, that is why this decision bares so much danger and why traders are now skeptical of dollar’s future
Imposing new tariffs and threatening even more of those, as well as breaking our hopes for soon-to-come trade deal is a very powerful move, but it sent the markets spiraling down and traders are now forced to flee for safe havens as USD is clearly not the currency for us right now.
Gold is growing and yen is gaining price against the greenback for the first time in several weeks. We, of course are hoping that the growth for them is going to continue, but now we have to understand at what price we got it. Relationship between the countries are getting worse and trade war doesn’t seem to be resolving. It is not easy – trading right now, but we have to manage somehow.
American stock market is also not very pleased with all the news. The fall, that we saw yesterday is extending itself and there is a pretty good chance that we are not going to see recovery up until the situation is improved.
Here are the numbers for today:
Topix lost 0.25 percent.
Kospi declined 0.7 percent.
Shanghai Composite was barely changed.
Hang Seng from Hong Kong decreased 1 percent.
S&P 500 futures added 0.1 percent.
Euro was flat - $1.1075.
Pound added 0.4 percent - $1.2992.
Yen grew 0.5 percent – 108.57 per dollar.
Canadian dollar added 0.1 percent - $1.3288.
Tesla grew 0.4 percent - $336.2.
Apple decreased 1.8 percent - $259.45.
Facebook lost 0.4 percent – $198.82.
Amazon decreased 0.65 percent - $1769.96 per share.
Google grew 0.4 percent - $1295.28.
WTI increased by 0.3 percent - $56.45 per barrel.
Brent added 0.4 percent - $61.22 per barrel.
Gold grew 0.2 percent - $1480.47 per ounce.
Silver surged 0.25 percent - $17.19 per ounce.
Platinum grew 0.2 percent – $911.73.