Wednesday the disaster .. Global markets lose their balance after Trump’s decisions

A report revealed that a wave of severe disturbances struck the financial, currencies and commodity markets after a sudden announcement by former US President Donald Trump about new customs duties, in what was described as “the catastrophe.”
The report said: The sudden move turned the balance of markets upside down, pressed the dollar, stocks and goods, amid escalating fears of global economic stagnation, and heavy sales waves led by speculators in futures and commodity markets.

Currency markets

The speculators in the currency market went to reduce their bets prior to what President Trump called “Tahrir’s Day”, which soon turned into a “disaster” after he blew a wave of violent disturbances in global markets.
The tremor caused by the sudden announcement of the customs duties hit the US dollar and pushed the shares and bond returns to sharp declines.
During the week ending April 1, future contract data on the Chicago Stock Exchange showed that net US dollar centers for an eight -major basket of eight major currencies had returned to a slight purchasing site, recording $ 1.2 billion.
Seven of eight coins witnessed clear sales operations, which were exported by liquidation of purchase centers in the euro, the pound sterling and the Swiss franc.
The report A, despite the volatile conditions, remained the net purchasing centers in the Japanese yen (equivalent to 10 billion dollars), the euro (7 billion dollars), and the pound sterling (3 billion dollars).
On the other hand, the Canadian dollar and the Swiss franc registered the largest net selling centers of -9 billion and -6 billion dollars, respectively.

Commodity

The report period ended before Trump’s announcement of the new wave of drawings, which sparked sharp retreats across the markets, including basic commodity markets. These decisions fueled fears of global economic stagnation, and led to a radical re -pricing of demand expectations.
In the following days, the Bloomberg of Commodities Index decreased by 7.5%, to erase almost all the gains of the year to date.
Although the performance of goods is still better than its counterpart in the stock markets, the losses were fatal, especially in periodic commodities such as energy and industrial minerals, which prompted traders funded by the crane to accelerate the pace of their exposure to markets, which increased the short -term declines.
Among the most prominent of these losses are: the decrease in West Texas Intermediate crude by 17%, copper by 14.5%, and silver by 13%.
It is expected that the declining pressures on the prices of commodities will continue in the short term, due to the risks of stagnation and possible reprisal measures. However, there are support factors that may appear later, such as shrinking the supply as a result of declining prices, poor dollar, and increasing economic stimulation, especially from China and perhaps also from Europe.
It should be noted that the inflationary recession periods – which are characterized by high inflation, unemployment and slowdown – were often supportive of commodity prices historically, especially gold.
Since these developments occurred after the end of the report, the available data highlights the goods that were the most exposed to the wave of reducing the centers that followed the event.

Energy sector

The increase in the net purchasing centers in Brent crude contracts by 21% during the report period, making the market in particular vulnerable to a subsequent sales wave, in light of the escalation of fears of stagnation and the sudden “OPEC+” coalition decision by increasing production starting from next month. The increase in diesel and gasoline fuel purchasing centers also exposed the entire sector to heavy sale.

Metal sector

According to the report issued by “Sasco Bank”, silver witnessed a sharp decline by 18% of the summit to the bottom since the announcement of the fees, after it had already started liquidation of partial centers, but this was not sufficient to contain the collapse, which was exacerbated due to the expansion of the price difference between the Comics and London stock exchanges and the escalation of concerns from global stagnation.
Each of the gold and copper centers underwent profit reaps, but the long positions remain at high levels made the market brittle in front of any shock.