Home Finance Analysis-VS Tech and Tarief Shocks Spark Scramble for new market paradises

Analysis-VS Tech and Tarief Shocks Spark Scramble for new market paradises

by Eclipsnews
0 comments

By Naomi Rovnick

LONDON (Reuters) – Like a Tech Share Route and American Dollar Exchange Driven by President Donald Trump’s tariff threats send markets in a downward play, investors stack themselves in assets from the Japanese yen to European credit that could act as a buffer for the turbulence .

Markets that have welcomed Trump’s pro-growth agenda have become bumpy, with oil prices and the currencies of Canada and Mexico rotating, confused inflation forecast shaking shaking and investing investors who start to consider the new White House as a source of risk.

“There will probably be more volatility in the US dollar and about many other assets,” said Amelie Derambure, senior multi-asset manager at Europe’s largest investor Amundi.

She said that she had limited the exposure of her funds to sudden shifts in American prospects by investing in inflation-linked bonds that would be insulated by tariff-induced consumer price increases and European occupational debt that can win on further reduction of the euro zone.

Monday’s deep slump in artificial intelligence chip maker Nvidia, driven by panic over cheap Chinese competition in AI, has also thrown a new curveball on Febreele American markets with investors who expect more unrest.

Buffer acts

Trump began to have his presidency guessed by the markets if he would impose his heavily trained import tasks, a trade agreement in China Dreef, called for lower oil prices and interest interest rates and multinationals to produce in the United States.

That has already risen to assets that investors perceive are less sensitive to American policy uncertainty and AI fear.

Since the American elections of 5 November, the American inflation index-linked bonds have been returned around 1.5%, while an index of American treasuries is falling by approximately 0.4%.

The Japanese yen hit its highest in more than five weeks against the dollar on Monday, after the Bank of Japan had increased the interest rates last Friday to their highest since the worldwide financial crisis of 2008 and revised its inflation forecasts.

It has achieved more than 2% to around 155 per dollar since he has spent six months lows on 10 January.

Russell Investments Head of currency and fixed-income-free solution strategy from Luu said that the yen could be a strong buffer against tariff shocks, because although all the currencies of the exporter countries would suffer from trade wars, the euro and the Swiss Franc would be weakened by tariff reductions

“The yen has clearly done it bad since 2022, so I think the time for a change can be relatively close,” he said.

Society General Asset Allocation Head Alain Bokobza said that he recommends that he would buy the Yen in the required customers, who has taken the victim of the climb of the dollar, but now it was supported by Bank of Japan Rate Hikes.

You may also like

Leave a Comment

Experience a world of information in one place! Our site covers breaking news, beauty, lifestyle, entertainment, tech, and travel – your gateway to a diverse and enriching news landscape.

Subscribe our newsletter for latest lifestyle, tech update. Let's stay updated!

 
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
-
00:00
00:00
Update Required Flash plugin
-
00:00
00:00

Adblock Detected

Please support us by disabling your AdBlocker extension from your browsers for our website.