With intense fluctuations the Asian was opened markets Today (22.4.25) in the shadow of increasingly concern international investors over a possible positive outcome of talks between USA and their commercial partners in order to achieve a “win – win” agreement.
Yesterday the US markets recorded a significant drop (around 2.5%). At the same time, the dollar’s downward trend, the upward trend of yields on US government bonds, while gold, recording a new rise rally, is on the doorstep of $ 3,500. The negative climate of markets contributes and Trump’s open attack on the president of the US Central Bank (FED), Paul, sharply increasing his pressure to rapidly lowering interest rates.
Trump (seeing international investors not responding to his plan) calls for a faster reduction in interest rates in order to launch the American economy to the softer, while considering that there is no risk of increasing inflation, despite the tariff walls he has raised.
Japan: We will not continue to retreat to US demands
Japan will not continue to retreat to US requirements to reach an agreement on tariffs, declared yesterday (21.4.25) Prime Minister Shigeru Ishiba.
This is one of his most militant statements since Trump has begun an effort to more access to the sensitive areas of the automotive and agriculture of Tokyo in his world trade war.
Finance Minister Katsunobu Kato said Japan is in contact with other nations on how to better convey widely common concerns about the impact of duties during meetings in Washington this week.
Bei
Beijing also warned nations against the conclusion of trade agreements with Washington affecting China, stressing that economies around the world are in danger of being involved in tensions between the two powerful forces.
US Vice President Jay Di Vance is in New Delhi as the US threatens to increase duties 10% on Indian exports to 26% if no agreement is reached by the end of 90 -day pause that Trump came into force earlier this month.
“Optimism seems to weaken, with markets possibly starting to invoice a less favorable result.” In talks on duties, Jun Rong Yeap, a strategic market analyst at IG Asia, wrote. “Hard rhetoric from key US traders, such as Japan, has underlined the challenges to reach consensus, which suggests that talks are likely to pull for longer.”
Thailand, which seeks a suspension by the Trump government’s plan to impose a 36% duty on its products, said that the previously scheduled ministers’ talks have been delayed.
Why is Trump attack on investors on Powell
Fears that Trump may be preparing to dismiss Powell because he refused to reduce interest rates faster are the most recent market concern, which are already swinging after the president increased the duties to the highest level of the century.
The climate in Wall Street has been converted by optimism into a “Sell America” state, as Trump overturns the world commercial class with duties. This move will enhance inflation and push the US into recession, according to economic analysts.
A multicultural trade war is enough to cause trouble to investors, let alone added to the Fed’s independence crisis, analysts estimate.
The president, in his post, on Truth Social yesterday, increased the pressure on the Fed president, insisting that There is no ‘substantial’ inflation and that it is time for ‘preventive cuts’ (in the reduction of interest rates). However, the latest measurement of the Fed Inflation Right remains above the Central Bank target and there will be a new measurement next week.
National Economic Council Director Kevin Hasset said on Friday, April 18, that Trump is studying if he is able to dismiss Powell. Trump comments have raised new questions about whether the Fed can maintain its long independence.
Trump’s quarrels have forced to reassess the assets that are fundamental to US economic sovereignty. The dollar and government bonds, traditional shelters in periods of pressure, suddenly seem much less attractive.
“The US remains the US. This is not going to change, ”said Blackrock’s Powell. “The dollar remains the dollar. Therefore, there is no alternative to some extent.”
The dollar continued its retreat over G10’s counterparts today. Meantime, China let Wuan be weakened against almost all the big coins to support its overwhelming economy as the US trade war is deepening.
In the midst of uncertainty, investors accumulate in gold, with the precious metal exceeding $ 3,444 per ounce after a 2.9% rise yesterday.
“It is an uncertainty and the market is very sensitive at the moment in uncertainty,” said Ecaterina Bigos, Cio for basic Asia -based investments outside Japan at AXA Investment Managers.