| Table of Contents |
| Quick Facts |
| Forex Today |
| Trump Stays Course on Tariffs |
| What’s Ahead for Forex Markets? |
- Nikkei 225 entered bear market territory
- Hang Seng Index plummeted over 13%
- S&P 500 and Nasdaq composite slid over 3%
- US Treasury yields fell to multi-month lows
Forex Today: Big Stock Rout as Trump Stays Course on Tariffs
The global stock market experienced a major sell-off yesterday, with Asian equities suffering their worst day since the 2008 financial crisis. The S&P 500 and Nikkei 225 entered bear market territory, while the Chinese Hang Seng Index plummeted over 13%. However, amidst the chaos, US President Donald Trump remained steadfast in his stance on tariffs, believing that the “medicine” is necessary for the USA.
The stock market rout was widespread, with major indices around the world suffering significant losses. The Nikkei 225 in Japan plunged 4.5%, while the Shanghai Composite Index dropped 5.6%. In Hong Kong, the Hang Seng Index tanked 13.3%, its worst day since October 2008. The S&P 500 in the US fell 3.5%, entering bear market territory, while the Nasdaq composite slid 3.8%. The Dow Jones Industrial Average declined 3.2%, with 25 of its 30 components losing ground.
Trump Stays Course on Tariffs
The rout in the stock market was triggered by a combination of factors, including escalating trade tensions between the US and China, global economic concerns, and rising bond yields. However, despite the turmoil, US Treasury yields fell to multi-month lows, with the 10-year yield dipping to 2.43%. The yield on the 30-year bond fell to 2.84%, its lowest level since January.
Despite the chaos in the markets, President Trump showed no signs of wavering in his stance on tariffs. In a tweet, he wrote, “The Medicine is necessary to take care of China’s abuse and frankly the abuse we’ve taken from other countries for many years.” He added, “Under my leadership, we’ve made incredible progress on trade, and we’re going to keep making progress.”
The tariffs imposed by the US on Chinese goods have been a major point of contention between the two countries. China has retaliated by imposing its own tariffs on US goods, which has led to a tit-for-tat trade war. The US is seeking to address concerns over intellectual property theft, forced technology transfer, and market access.
What’s Ahead for Forex Markets?
The next few days will be crucial for the forex markets, as investors will be closely watching the developments on the trade front. There are several key events on the horizon that could impact the markets, including the upcoming G20 summit and the US-China trade talks.
The G20 summit, which is scheduled to take place in Osaka, Japan, will bring together leaders from around the world to discuss issues such as trade, climate change, and economic development. The summit is expected to be a key moment in the global economic calendar, and investors will be closely watching the outcomes.
In addition, the US-China trade talks are set to resume, which could lead to some significant developments on the trade front. The talks are expected to focus on issues such as tariff reductions, market access, and intellectual property protection.
In the meantime, investors will be closely watching the movements of the US dollar, which has been strengthening in recent days. The dollar index has risen to its highest level since February, and investors will be eyeing the currency’s performance in the coming days.
Overall, the next few days will be critical for the forex markets, and investors will be closely watching the developments on the trade front. Despite the chaos in the markets, there are some positive signs emerging, and some experts believe that the sell-off in the markets may be an opportunity to buy.
