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Hello everyone, today Avatrade Aihua Foreign Exchange will bring you "[Aihua Foreign Exchange Market Analysis]: "Black Monday"! Explosive gold market!". Hope it will be helpful to you! The original content is as follows:
On April 7, during the Asian market on Monday, the negative reactions in the financial market caused by Trump's "Liberation Day" tariff plan continued to ferment. In this turmoil, President Trump once again stressed on social media that he believes that imposing high tariffs is the only way to resolve the U.S. trade deficit.
Last Wednesday, Trump announced a new plan to impose a 10% benchmark tariff on all global imports from April 5 and impose "reciprocal" tariffs on major U.S. trading partners, especially China and the EU. This will make tariffs on imported goods from these countries exceed 50% and 20% respectively. The additional tariff plan will aihuaforex.come into effect on April 9.
Economists estimate that Trump's reciprocal tariff policy will push the average U.S. tariff level to nearly 30%, the highest level in more than a century.
The market showed signs of a sharp decline again on Monday. In the last two trading days of last week, the S&P 500 fell by more than 10%, while the Nasdaq aihuaforex.composite Index fell into a bear market last Friday. Asian markets also fell into chaos at the start of trading this week.
It is worth noting that the yield on the 10-year U.S. Treasury bonds continues to fall sharply as investors around the world flock to U.S. bonds seek hedges. The 10-year yield has fallen to 3.92%, the lowest level since October last year.
Trump administration members, especially Treasury Secretary Scott Becent, said lowering Treasury yields is one of the key goals of Trump's economic agenda.
According to Reuters, Trump said in a question on the Air Force One on Sunday that "sometimes you have to take medicine" about the recent decline in the market.
The president added that his policy was not intended to cause market sell-offs. “I don’t want itHope anything falls, but sometimes you have to take medicine to solve the problem. ”
Asian market
Japan's nominal wage increased by 3.1% year-on-year in February, a sharp jump from 1.8% lower in January, in line with expectations.
However, this strong data was mainly due to the surge in special payments, up 77.4% year-on-year. Normal wages are considered a more stable wage trend indicator, actually slowing to 1.6% year-on-year from 2.1% last month, indicating a moderate growth momentum for basic wages.
Although the overall data is optimistic, real wages (adjusted for inflation) fell for the second consecutive month, down -1.2% year-on-year. Meanwhile, according to the Ministry of Labor calculations Consumer inflation remains at a high of 4.3%, slightly lower than 4.7% in January.
European market
UK proposed to cut tariffs on US beef and fish; White House officials said that the Prime Minister expected to visit the United States on April 7 and would discuss tariffs with Trump; Japanese Prime Minister will hold a conference call with Trump this week to make suggestions on the issue of tariff imposition of US tariffs; Malaysia: will consult with ASEAN countries on US tariff measures to strive to reach a aihuaforex.common position; Cambodia will lower tariffs on some imported goods from the United States from 35% to 5%; Vietnam will impose temporary anti-dumping tariffs on galvanized steel imported from South Korea and other countries; Indonesia will not Retaliatory measures will be taken against U.S. tariffs.
Musk hopes the United States and Europe to move towards zero tariffs, criticizing Navarro, the trade adviser of the "tariff faction". However, the EU may launch a counterattack, possibly taking countermeasures against US imports of up to $28 billion.
U.S. market
The Canadian labor market was disappointing in March, with employment falling by -32.6k, well below the expected 10.4k growth.
This is the first monthly unemployment since January 2022, due to a sharp decline in full-time positions, down 62k. Employment rate fell by 0.2 percentage points to 60. 9%.
Unemployment rose to 6.7%, in line with expectations. Wage growth slowed to 3.6% from 3.8% in February.
The U.S. labor market showed unexpectedly strong momentum in March, with non-farm employment increasing by 228k, well above the market expectations of 128k. The growth was also significantly stronger than the previous 12-month average of 158k.
Strong employment growth highlights the continued elasticity of recruitment, even as uncertainty over trade policy and financial conditions increased.
Unemployment rose slightly from 4.1% to 4.2%, marking the recent aihuaforex.com, although with a slight increase in labor force participation rate to 62.5%.
Average hourly wages increased by 0.3% month-on-month, in line with theExpected, indicating that wage pressure remains stable.
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