As markets in Europe prepared to open, Asian markets showed a mixed response with a calmer night compared to the previous day. While Thailand and Indonesia saw significant losses, most regional markets rebounded from the turmoil caused by President Trump’s threats to increase tariffs.
The Taiex in Taiwan fell 4.4%, led by a decline in shares of TSMC, the world’s largest chip maker. Other markets in the region, including China, Japan, and Hong Kong, saw slight gains after the previous day’s steep declines.
Investors are closely watching Trump’s trade policies, which could have far-reaching implications for global markets. The uncertainty surrounding the future of trade relations between the US and China has caused significant volatility in stocks and other assets.
The prospect of a prolonged trade war has led to cautious optimism among investors, who are hoping for a resolution to the current trade tensions. The rise and fall of stock prices in response to rumours and statements from Trump underscore the sensitivity of the market to news related to trade negotiations.
Oil prices have also been affected by the uncertainty, with fears of reduced demand due to trade barriers. Gold prices have risen as investors seek safe-haven assets in the face of market volatility. Cryptocurrencies like Bitcoin have also experienced fluctuations in response to the broader economic uncertainty.
Overall, global markets are facing a challenging period as investors navigate the impact of trade tensions and geopolitical risks on their portfolios. The coming days are likely to be crucial in determining the direction of markets as countries weigh their responses to the tariff threats.
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