Traders, don't panic! The tariff issue will actually not impact the Federal Reserve.
Castle Securities believes that the Federal Reserve's policy is different from the short-term tariff effects and is more likely to overlook the impact of tariffs.
Will "Trump 2.0" destroy the U.S. dollar hegemony? Nomura: The risk of rising U.S. Treasury yields is much greater than a significant depreciation of the dollar.
Nomura believes that as the USA's external liabilities soar, the safety of dollar assets is being questioned, and foreign investors may seek higher returns, thereby pushing up US interest rates. In the long run, the risk of US long-term bond yield rising seems much higher than the risk of a significant devaluation of the dollar.
U.S. Two-30-Year Treasury Yield Spread Has Room to Widen -- Market Talk
Decision analysis: Market enthusiasm is dwindling! China's rare bullish signals are hard to save the situation, and the dollar remains strong as Powell shows his hawkish stance.
On Friday (November 15), the asia stock market seems to be ending the week's dismal performance with a more stable trend. At the same time, the dollar is approaching a one-year high, likely to welcome a huge weekly gain. The Federal Reserve chairman's hawkish shift pushed up short-term usa treasury yields, causing wall street and europe stock market futures to decline.
International Think Tank Warning: "Trump 2.0" will boost the US dollar, causing global market turmoil!
① Researchers at the Chatham House claim that Trump's policies could lead to a rise in the dollar, triggering chaos in global markets; ② The researcher warned that a rising dollar is bad news for the global economy, potentially suppressing global trade and increasing the difficulty of controlling inflation.
Be cautious! A new wave of inflation may be on the way.
Greenlight Capital's President David Einhorn expressed that the election results are good for avoiding the political stability issues he was worried about not long ago. However, in terms of the economy, he expects that Trump's second term policies will bring about higher inflation, thus leading to a bigger problem.
Trump's 'major announcement' alarms Wall Street! A chart shows the sharp decline in the US stock market: pharmaceutical stocks become 'disaster areas'.
Trump announced the nomination of Little Kennedy as the usa Secretary of Health, leading to a sudden crash in the US stock market, with the stock prices of vaccine manufacturers falling in response, as Little Kennedy is a well-known anti-vaccine advocate in the usa.
"Trump trade" remains popular, but how much longer can it last.
Stocks, bonds, and other assets are already expensive relative to historical levels. Trump's trade protectionism policy may lead to a resurgence of inflation and force the Federal Reserve to maintain interest rates at high levels for a longer period of time. In addition, the US economy is facing continuously expanding fiscal deficits and a labor market that is already showing signs of fatigue, which could put pressure on the economic growth outlook.
[US Stock Market Closing Review] Powell hinted that there is no rush to cut interest rates, and the Dow fell by 200 points.
On Thursday, November 14, the US stock market fell. The Producer Price Index (PPI) data showed that the price increase in October was slightly higher than expected, triggering new doubts about the Fed's policy direction next year. Fed Chairman Jerome Powell hinted that the strong economic situation might warrant some patience with future rate cuts.
Ishares Iboxx $ High Yield Corporate Bond Etf Options Spot-On: On November 14th, 667.77K Contracts Were Traded, With 5.83 Million Open Interest
On November 14th ET, $Ishares Iboxx $ High Yield Corporate Bond Etf(HYG.US)$ had active options trading, with a total trading volume of 667.77K options for the day, of which put options accounted
The International Finance Association warns: U.S. debt will 'explode' after Trump takes office!
The International Finance Association pointed out that Trump is very likely to make the US debt reach over 150% of GDP...
The Republican Party won a majority of seats in the House, but the slim advantage brings challenges.
House Republicans are expected to win a majority of seats in the next Congress, giving them unified control that allows Trump to have more say in budget and tax battles. However, given that the Republican majority is expected to be narrow and internal consensus may be difficult to achieve, this could hinder their efforts to advance Trump's agenda.
Goldman Sachs: The "rush towards junk stocks" trend will continue until Trump's inauguration, with the most short sold U.S. stocks being favored.
Goldman Sachs advises to continue holding the most short-sold stocks until the end of January next year, as a decrease in interest rates, avoidance of an economic recession, resolution of election uncertainties, and Trump's overwhelming victory will create an environment favorable for a rebound driven by 'animal spirits,' which benefits low-quality stocks.
Ishares Iboxx $ High Yield Corporate Bond Etf Options Spot-On: On November 13th, 298.57K Contracts Were Traded, With 5.65 Million Open Interest
On November 13th ET, $Ishares Iboxx $ High Yield Corporate Bond Etf(HYG.US)$ had active options trading, with a total trading volume of 298.57K options for the day, of which put options accounted
Wall Street comments on CPI: A rate cut next month is basically certain, but the pace of rate cuts next year may slow down due to Trump's policies.
Wall Street analysts say that CPI data in line with expectations can almost guarantee that the Federal Reserve will cut interest rates next month, but the market still needs to assess the impact of inflation caused by the next US president, Trump, which may lead to the Federal Reserve slowing down its rate cuts next year.
Treasury Yields Slip After CPI Data -- WSJ
U.S. Treasury Curve Has Room to Steepen -- Market Talk
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Treasury-German Bund Yield Spread Could Widen If U.S. CPI Data Surprises -- Market Talk
Multiple institutions have stated that Trump's victory will "affect" the bond market, and US bond yields may rise to 5% or higher.
Investment institutions Franklin Templeton, JPMorgan Asset Management, and T. Rowe Price all believe that as the market digests the impact of Trump's election victory on the bond market, US bond yields will rise.