Global financial markets experienced strong movements today, Tuesday, influenced by the announcement from U.S. President Donald Trump regarding new tariffs on imports from Canada, Mexico, and China. This move has raised investor concerns over the escalation of the global trade war, which directly impacted the performance of the dollar, gold, stocks, and cryptocurrencies, amid anticipation of the repercussions of the new economic decisions.
U.S. Dollar Declines for the Second Session Amid Increasing Expectations of Rate Cuts The U.S. dollar index continued to decline for the second consecutive day, recording a drop of 0.69% to reach 105.82 points. This decrease was driven by growing expectations for a cut in U.S. interest rates in the coming months, alongside falling U.S. Treasury yields, leading to diminished appeal for the U.S. currency against other major currencies. Additionally, hopes for a resolution to the Russia-Ukraine conflict contributed to selling pressure on the dollar, continuing its losses in global markets.
Gold Prices Surge with Increased Demand for Safe Havens Gold prices showed a significant rise during today's trading, with the price of an ounce jumping by $18 to reach $2,911. The precious metal benefited from the decline of the U.S. dollar and dropping bond yields, increasing its appeal as a safe haven amidst global economic tensions. The uncertainty regarding the implications of the new U.S. tariffs further boosted demand for gold, amid expectations of more increases in the period ahead.
Bitcoin Declines Under Pressure from Profit-Taking and Trade Tensions Bitcoin experienced a decrease of 0.43% during today’s trading, falling to $86,678, affected by profit-taking activities by investors following strong gains in previous sessions. Additionally, concerns about the implications of the new tariffs imposed by U.S. President Donald Trump on Canada and Mexico increased pressure on the cryptocurrency market, resulting in a wave of declines that affected various digital assets.
Oil Prices Decline Amid Growing Concerns of Oversupply and Increased Global Production Oil prices faced selling pressure during today’s trading, with Brent crude falling by 0.35% to reach $68.19 per barrel. This decline came after the OPEC+ alliance announced plans to increase production starting from April, raising widespread concerns about global oversupply and its impact on market balance.
U.S. Stocks Show Mixed Performance Amid Market Volatility and Trade Policy Implications U.S. stock indices exhibited mixed performance during today’s trading, with the Dow Jones Industrial Average falling by 0.77% to reach 42,857 points, while the S&P 500 decreased by 0.38% to 5,827 points. On the other hand, the Nasdaq managed to gain 0.40%, reaching 18,422 points, supported by robust performance from technology stocks that successfully navigated market pressures. These movements occurred amidst uncertainty related to U.S. trade policies and their potential impact on global economic growth.
