Global shares with care -careful carelessly on Thursday, with Asian shares feel heat as a plan for US President Donald Trump, geopolitical concerns and careful attitudes of federal reserve policy makers injuring risk sentiment.
The mood is at risk of lifting the price of gold to the highest record, while the safe Japanese Yen has strengthened to the highest level since the beginning of December against the dollar.
European Futures pointed to open open on Thursday, the day after the Pan-European Stoxx 600 index fell almost 1%, the biggest daily decline in two months. Futures for S&P 500 and Nasdaq loose 0.3%.
Trump throughout the week has sworn in extensive import tariffs including medicinal products, semiconductor chips, and wood. He intended to charge the tariff on the car soon on April 2.
That along with other threats, it has exacerbated the fears of a broad trade war, making investors nervous, although some analysts see movements by Trump as negotiation tactics.
Market fall increased in geopolitical concerns after Trump was worried about European officials by criticizing Ukraine President Volodymyr Zelenskiy as “dictator”, amid US talks with Russia to end the Ukraine war.
Yen reached the highest more than two months against the dollar and last rose 0.9% at 150,065 per dollar. Yen has increased by more than 4% of this year’s dollar driven by an increase in the chances of the Bank of Japan climbing level again in 2025.
“Uncertainty about the Fed’s policy and Trump tariffs will continue to rail out the market and make investors remain restless, without any end that are seen in the short term,” said Vasu Menon, Director of Investment Strategy at OCBC Bank in Singapore.
“Investors must accept the fact that volatility will be higher this year … there is a valid reason to remain optimistic about investment views, especially for those who have appetite and patience.”
In Asia, Nikkei Japan slid 1.5% on a strong yen, while the scorching rally in Chinese technology shares took the breath.
The Hang Hong Kong Hang Index slipped 1.3%, after touching the highest four months earlier this week was driven by technology shares after the breakthrough of China Deepseek’s startup.
Trump’s initial policy proposal raises concerns in Fed about higher inflation, with companies telling the US central bank that they are generally expected to raise prices to deliver import tariff costs, according to the Minutes of the January Fed meeting released on Wednesday.
“Trump’s policy … There is no doubt adding complexity to the Fed Balancing Action between inflation and work, forcing policy makers to rely on the waiting and seeing approach,” said Yeap Jun Rong, a market strategy expert at IG.
“That said, with the hope that the market that had been well in harmony for the detention of tariffs during the next two FOMC meetings, the minutes would function more as a confirmation of the existing sentiment.”
Traders have a price in 39 basis of cutting points this year from The Fed with the next step completely with the full price for September, LSEG data shows.
The dollar index, which measures the greenback to a basket of currencies including Yen and Euro, subside 0.16% to 107.06. Euro is stable at $ 1,0428.
The price of gold rose to the highest new record of $ 2,947.11 per ounce, reaching a new peak for the ten times this year. Yellow metal rose 12% so far in 2025 after an increase of 27% last year, the strongest annual performance in more than a decade.
The price of oil subsided from the highest one week while wheat extended the profits to the fifth session to trade near the highest closure since October, supported by concerns that cold weather in Russia and the US could damage plants.
Source: Reuters
