Stock markets around the world reacted sharply to Trump’s tariff plans for Canada and Mexico; Stocks, currencies, commodities and cryptocurrencies show significant fluctuations.
Global markets are experiencing economic volatility in Donald Trump’s first two days as president. Investors reacted to the application today. tariff promises It was made during their campaigns for Mexico and Canada, which included rates of up to 25%.
The US dollar pulled back sharply, which supported the market. Euro reached its maximum in two weeks over 1.04. Bitcoin briefly rose to a new record above $109,000 (105,247 euros) and then pulled back. Gold rose, oil fell. European stocks closed higher after Trump’s team signaled that initial executive orders could exclude tariffs on products from China, Canada and Mexico.
But that hope was dashed by Trump on Tuesday. confirmed the application of tariffs Up to 25% increase in imports from Canada and Mexico as of February 1. This announcement caused anxiety in the markets. As the dollar regains its former strength and puts pressure on other currencies, including the euro. Instead, US stocks fell, with possible repercussions for European markets.
Risk aversion prevails in the markets
Investors are increasingly turning to “safe haven assets” to protect themselves from uncertainty, sensitive to Trump’s changes. “This shows how worried the markets are.” due to trade wars. “Also, the volatility seen today shows that sentiment can change in an instant,” said Kyle Rodda, senior financial markets analyst at Compital.com.
Early in the Asian session this Tuesday, traditional safe-haven assets like gold and Japanese yenwas shot. At 04.25 local time, gold prices increased by 0.72 percent to 2,725 dollars (2,632 euros) per ounce; this is the highest level since election day on November 5. For your part, The euro pared some of its previous gains We’re retreating against the dollar until it recovers below 1.04.
However, the dollar may maintain its strength as a safe haven asset. “For the dollar, uncertainty around tariff policies and potential trade frictions are likely to strengthen its appeal as a safe-haven asset,” research strategist Dilin Wu writes in an email to Euronews. “Gold continues its upward trend and continues to benefit from asylum demands,” the expert adds.
Bitcoin falls to record levels
Bitcoin rose above its all-time high of $109,000 (105,212 euros) after Trump’s inauguration, surpassing its previous peak of $108,300 (104,536). This rise was short-lived. Due to the new administration’s lack of clarity regarding cryptocurrency policy.
At 04:50 EST, Bitcoin reached session lows near $100,000 (€96,000). moderate to 103,000 (99.405). “Bitcoin investors may remain on the sidelines until regulatory policies and support measures become clearer,” Wu says.
Previously, Trump announced plans to establish a Bitcoin reserve in the United States and ease its federal regulations. Both Trump and his wife over the weekend They launched their own money On the Solana blockchain. This company and its crypto assets soared before pulling back last Saturday.
Despite Volatility, Cryptocurrency Enthusiasts Remain Optimistic and Believe in Trump will implement prohibited policies In his first 100 days in office.
Oil under pressure
Crude oil prices fell for the third day in a row on MondayWhile Trump announced his intention to create a “national energy emergency” to increase American production and reverse climate-focused policies implemented under the Biden Administration. “We will be a rich nation once again, and it is the liquid gold beneath our feet that will help us get there,” the new president said.
What happened in oil prices A modest recovery in the Asian sessionWTI futures rose 0.65% to $76.89 per barrel (74.23 euros) and Brent futures rose to $80.20 (77.42 euros) per barrel.
The oil market reached a six-month high last week with support. Additional sanctions on Russian exports The sanctions imposed by the Biden Administration and the economic data from China were better than expected.
However, the outlook for oil prices remains uncertain as Trump has promised to end the war between the two countries. Ukraine and Russia. Their approaches could include tightening sanctions against Russia or easing restrictions to facilitate negotiations; Each of these could have a negative impact on crude oil prices.
