International News The U.S. and China are on the verge of a complete decoupling, with U.S. tariffs on China having skyrocketed to at least 145% after several rounds of increases. Furthermore, starting May 2, the tariff rate on small packages from China valued at under $800 will be raised from the originally planned 90% to 120%.
The Director of the White House National Economic Council stated that there have been no specific consultations between the U.S. and China regarding tariffs, and that Trump and China will have a dialogue at some point in the future.
The U.S. inflation rate unexpectedly cooled before the tariff impact, with the overall CPI in March experiencing its first month-on-month decline in nearly five years. Strategists say this is just the calm before the storm, as tariffs will lead to higher inflation in the future.
The President of the Kansas City Federal Reserve stated that if forced to choose between dual mandates, he would prioritize curbing inflation. The President of the Boston Federal Reserve indicated that tariffs pushing up inflation could delay interest rate cuts.
U.S. leveraged loan funds saw record outflows in a single week, as investors worry that tariffs will impact the U.S. economy and force the Fed to cut rates sooner.
The EU announced a 90-day postponement of its countermeasures against U.S. metal tariffs, during which time negotiations with the U.S. will continue.
Bridgewater founder Dalio stated that the tariff storm severely damages the U.S.'s reliable image, and he is particularly concerned about the fundamental supply and demand situation for U.S. bonds. Renowned investor Kyle Bass noted that the U.S. is gaining the upper hand in the trade war with China, and although the U.S. economy may slightly decline, it will help lay a more solid foundation.
The U.S. House of Representatives voted to pass the budget plan, marking further progress for Trump's tax cuts and debt ceiling increase actions. The U.S. has lowered its forecast for global oil demand growth in 2025, reducing it by approximately 400,000 barrels per day from last month's forecast. Goldman Sachs: The collapse of oil prices will have profound implications for Saudi finances, with this year's deficit expected to soar to $67 billion.
Germany's leading research institutions predict that Trump's tariff policies will lead to stagnation in the country's economic growth this year.
Due to soaring British bond yields triggered by Trump's tariff actions, the Bank of England has paused the sale of long-term government bonds.
After Trump threatened to impose tariffs on the pharmaceutical industry, Swiss pharmaceutical giant Novartis pledged to invest $23 billion in the U.S. over the next five years. Prada will acquire Versace for $1.375 billion, with the transaction funds sourced from a €1.5 billion new bond issuance.
International News #国际 #美国加征关税 · Trump angrily criticized China's countermeasures and warned that if Beijing does not withdraw the 34% retaliatory tariffs by April 8, he will impose an additional 50% tariff on China starting April 9, and all talks and negotiations initiated by Beijing will be terminated. · After Trump's threat to impose additional tariffs on China, the offshore yuan plummeted, and Chinese stocks and ETFs traded in the U.S. accelerated their decline, with the Nasdaq Golden Dragon China Index once plunging by 7.6%.
· Trump stated that he would not suspend tariffs on various countries, but he is open to negotiations. U.S. Treasury Secretary Mnuchin indicated that about 70 countries are seeking to negotiate tariffs, with Japan receiving priority treatment, and everything can be negotiated. · White House trade advisor Navarro hinted at Vietnam lowering value-added tax and tariffs, stating that Vietnam's proposal to cancel tariffs on the U.S. is “meaningless.” · Trade ministers from EU countries unanimously agreed to prepare for comprehensive countermeasures against the U.S., including possibly imposing a digital tax on U.S. tech giants. · The EU is considering imposing a 25% tariff on certain U.S. goods in response to Trump's decision last month to impose tariffs on steel and aluminum. · Wall Street is collectively lowering its target for the S&P 500 index. Notable investor Boaz Weinstein stated that the avalanche in the credit market has just begun and may trigger a wave of corporate bankruptcies.
· BlackRock CEO Larry Fink stated that most CEOs he has spoken to believe that the U.S. is in recession. · Federal Reserve Governor Kugler indicated that inflation is a more pressing issue than economic slowdown regarding the impact of tariffs. · Traders expect the Federal Reserve to implement four rate cuts of 25 basis points each in 2025, with the first cut coming in June. · U.S. consumer credit unexpectedly declined in February, falling below all economists' estimates.
· Trump ordered the U.S. Foreign Investment Committee to reassess the proposed acquisition of U.S. steel by Japan's steelmakers, possibly suggesting a reversal of Biden's previous veto decision.
· To curb market volatility, Thailand will temporarily ban short selling of stocks and tighten other stock trading rules from Tuesday until April 11.
April 7th Global Major Market Overview Stock Market 🇨🇳 Shanghai Composite Index down 7.34% 🇭🇰 Hang Seng Index down 12.57% 🇯🇵 Nikkei 225 Index down 7.83% 🇰🇷 South Korea KOSPI Index down 5.57% 🇳🇿 New Zealand Stock Index down 2.73% 🇦🇺 Australia S&P/ASX 200 down 6.57% 🇵🇭 Philippines Composite Index down 4.3% 🇮🇳 India Sensex Index down 4.23% 🇪🇺 Europe Stoxx 50 Index down 6.11% 🇩🇪 Germany DAX Index down 7.65% 🇫🇷 France CAC40 Index down 6.48% 🇬🇧 UK FTSE 100 Index down 5.43% 🇮🇹 Italy FTSE MIB Index down 7.76% 🇷🇺 Russia MOEX Index down 3.7% 🇮🇱 Israel TA35 Index down 2.6% 🇳🇱 Netherlands AEX Index down 6.73% 🇪🇸 Spain IBEX 35 Index down 7.31% 🇨🇭 Switzerland SMI Index down 6.1% 🇩🇰 Denmark OMXC25 Index down 5.2%
Commodities and Futures Spot Gold down 0.4% to $3023/ounce Spot Silver up 0.93% to $29.86/ounce WTI Crude Oil Futures down 3.9% Brent Crude Oil Futures down 3.9% U.S. Natural Gas Futures down 2.3% London Copper down 0.89% London Nickel down 2.1% London Zinc down 2.1% London Aluminum down 0.3% U.S. Wheat up 1% U.S. Corn up 0.03% U.S. Soybeans down 0.06% U.S. Soybean Oil down 2.3% U.S. Soybean Meal up 1.2% U.S. Cocoa down 8.4% U.S. Coffee down 5% U.S. Orange Juice down 3.3% U.S. Live Cattle down 2.6% U.S. Lumber down 2.4%
Currency 🇪🇺 Euro to USD up 0.73% 🇬🇧 Pound to USD up 0.3% 🇨🇳 USD to Offshore RMB up 0.35% 🇯🇵 USD to JPY down 1% 🇦🇺 AUD to USD down 0.4% 🇳🇿 NZD to USD down 0.36% 🇿🇦 USD to South African Rand up 1.26% 🇲🇽 USD to Mexican Peso up 1.5% 🇨🇦 USD to CAD up 0.2%
Cryptocurrency Bitcoin down 10% in the last 24 hours, falling below $75,000 for the first time since November 7 Ethereum down 19% in the last 24 hours to $1416, hitting a new low since March 2023
Don’t you know what’s happening in the world today? 1. Trump administration officials defended their move to impose high tariffs on U.S. imports. Treasury Secretary Scott Bessent said the sharp decline in stocks on Thursday and Friday was a "short-term" reaction and there was no reason to predict a rebound. 2. These measures will lead to a recession. Kevin Hassett, chairman of the National Economic Council, said prices may rise, but it will not be a "heavy burden" on American consumers. A trade adviser urged Americans "not to panic." 3. Indonesia, Southeast Asia's largest economy, said it would not retaliate against Donald Trump's 32% trade tariffs. Instead, the finance minister said the country would seek to negotiate with the United States and sell more goods to the European market. The region has been hit hard by the new tariffs; Vietnamese businesses have asked the United States to postpone a 46% tax on their goods.