Global actions fell on Friday after the president of the United States, Donald Trump, intensified his tariff war against Canada, leaving Europe directly in the shooting line, causing a modest impulse of investors in safe shelters such as gold.
The Canadian dollar fell after Trump issued a letter on Thursday night that said that a tariff rate of 35% in all Canada imports would apply from August 1. The European Union was scheduled to receive a letter before Friday.
The president of the United States, whose global tariff wave has altered companies and policy formulation, floated a rate of 15% or 20% rates in other countries, a step forward of the current reference rate of 10%. This week, it surprised Brazil, which has a commercial surplus with the United States, with 50%tasks, and hit copper, pharmaceutical products and semiconductor chips.
In addition to the volatility pockets in target currencies, actions or basic products, the markets have offered little reaction to the attack, leaving the VIX volatility index at its lowest point since the end of February.
In Europe, Stoxx 600, which has increased 2% this week, fell 0.8%. The futures in the S&P 500 and the Nasdaq fell 0.4-0.5%, pointing out a withdrawal of the maximum record this week outdoors.
“The market is becoming a little numb for these ads (rates), and maybe it is not until we see hard data that shows an impact that () we will begin to see the market reacting,” said the city’s index strategist Fiona Fincotta.
“Obviously, we are obtaining more information through that, it brings with it an element of clarity. Because there is so much uncertainty, there is still this idea that Trump could be open to negotiation, nothing feels ‘final’ yet,” he said.
The dollar increased to 0.5% before the Canadian dollar before retiring to C $ 1,3697, 0.2% more in the day. The euro, which has lost almost 1% in value since the beginning of July, fell 0.1% to $ 1,1694.
At the beginning of the week, Trump delayed its rate deadline from July 9 to August 1 for many commercial partners to allow more time for negotiations, but expanded its commercial war, establishing new rates for several countries, including allies Japan and South Korea, along with a 50% rate on copper.
Joseph Capurso, Chief of International Economics at Commonwealth Bank of Australia, said the 35% rate rate in Canada was not as bad as it was feared because most imports are still subject to exemptions under the agreement of the United States-Mexico-Canadá (USMCA).
“Now the rate rate in EU imports … That is what we still don’t know,” Capurso said. “If you get something similar to (the American commercial war in April), that will be very destabilizing.”
The Wall Street indices published record maximums on Thursday when the Nvidia chips manufacturer made history, packing a market assessment above $ 4 billion.
Gold increased for the third consecutive day, 0.8% to $ 3,348 per ounce, which caused profits for July so far to 1.2%. Treasury bonds obtained less safe impulse, since investors’ concern about the fragility of the Finance of the US government in the long term caused a sale of the sale of yields.
The 10 -year reference yields increased 3.7 basic points to 4,384%, which adds to the increase on Thursday to the back of the data that showed that unemployment claims unexpectedly fell last week.
The YEN, which also usually behaves as a safe shelter, has constantly weakened as perspectives are attenuated for a commercial agreement between the United States and Japan. The dollar increased 0.45% on Friday by 146.93 yen, established for a weekly gain of 1.6%, the largest this year.
Bitcoin increased up to 4.6% to a new record of $ 118,832.
Investors will see the corporate profits of the second quarter next week to evaluate the impact of Trump tariffs from April 2. JPMorgan Chase results will be launched on Tuesday, essentially start the report period.
Oil prices increased almost 1%, partially reversing the losses of the previous day, to leave Brent Crude at $ 69.3 per barrel.
—Stella Qiu and Amanda Cooper, Reuters
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