Under “pressure” the new month entered for the shares worldwide, as the escalation of global commercial tensions and geopolitical uncertainty have weakened investor confidence in markets.
The future fulfillment contracts of the S&P 500 fell 0.5%, while European and Asian shares also fell. The dollar lost 0.4%, extending the series of five consecutive monthly losses. Government bond yields increased, with the 10 -year interest rate rising by four basis points to 4.44%. The latest upheavals on the agenda of President Donald Trump’s duties have increased the uncertainty in the market, following mutual allegations between the US and China to violate a trade agreement and Trump’s promise to double duties in all steel and aluminum imports.
Tensions have contributed to the opposition to the recovery of US shares, as traders fear that volatility can continue in the absence of permanent agreements. Meanwhile, Ukraine has held a series of attacks deep in Russia before the peace talks scheduled for today (2.6.2025) in Constantinople.
Strategic analysts say it is unlikely to reach the levels observed during the sale that followed Trump’s announcement on April 2. Traders are now increasingly seeing such moves as a negotiating tactic to ensure more favorable terms.
“The sensitivity of investors and traders to these tariff news is probably a little reduced,” Max Kettner, a leader of multi -asset strategic analyst in HSBC, told Bloomberg TV. “This is primarily a negotiation tool. I do not need to take into account a persistent burden on profits, a persistent burden on the prospects of profits. “
The dollar was negotiating close to the lowest level since 2023, after expanding 7.6%losses. Slowing US growth and interest rate reductions will further push the dollar to a drop to levels last observed during the pandemic, according to Morgan Stanley strategic analysts.
“We believe that interest rates and currency markets have begun significant trends that will be maintained – driving the US dollar much lower and the yield curves much steeper – after two years of swinging transactions in large spaces,” they wrote.