Doda San Chong Counterattack! The trade war spreads, and global assets are in turmoil!
On March 4th, our country imposed tariffs on U.S. imports of agricultural products and food, escalating the China-U.S. trade war. Trump simultaneously imposed tariffs on automotive imports from Canada and Mexico, triggering global trade tensions.
Market Reaction:
U.S. stocks plummeted, with the Dow Jones and Nasdaq dropping over 3%, led by technology stocks. Cryptocurrencies experienced a rollercoaster ride, with Bitcoin initially rising then falling, now recovering to $88,000. Safe-haven assets like gold and U.S. Treasury bonds are in high demand.
Cryptocurrency Dilemma:
Trump's remarks on cryptocurrency reserves initially boosted the market, but the escalation of the trade war led to a collapse in confidence, causing a cryptocurrency crash. The decline in U.S. stocks triggered massive liquidations in Bitcoin.
Global Markets Varied:
European stock markets were strong, with Germany's DAX hitting a new high and defense stocks soaring. Commodity prices were under pressure, with OPEC+ increasing production causing oil prices to drop to $68.
Future Outlook:
Short-term pressures are significant, with China-U.S. tariffs impacting corporate costs, U.S. stocks experiencing volatility, and cryptocurrencies awaiting clearer policies. However, in the long run, it may benefit the diversification of the global supply chain, with U.S. exports affected.
Retail Investors' Strategies:
Diversify risks, invest in safe assets like gold and U.S. Treasury bonds, and pay attention to Europe’s defense and new energy sectors. For tech stocks, choose domestic supply chain companies.
The escalation of the trade war affects the global industrial chain, and the market needs to digest policy shocks, but after the panic, new opportunities will arise. Retail investors should focus on cryptocurrency summits and OPEC+ production adjustments.
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