Global stock markets bring solid profits as the US dollar shows weakness

• Global equity markets brought solid profits this morningAnother potentially positive day for the US market – S&P 500 Index futures contracts rose 0.3% this morning, bringing Bell up ahead of time. But what lurks behind the good news was concerns about an increasing weakness in the US dollar and foreign currency.

Indian Nifty 50 Today it rose by more than 2% I hope it is positioned properly It will benefit from US supply chain operations moving from China. The Indian market is the first major indicator to completely erase the losses caused by President Trump’s trade war.

Profit came after having a good day in the US on Monday. Dow Jones Industrial Average I climbed More than 300 points on Monday as the market continues to gather tariff exemption prospects. That leads to an increase of 0.78%, S&P 500 It rose 0.79%, with more high-tech Nasdaq 0.64% jumped. One of the highlights is Palantiran increase of nearly 5%.

S&P However, it has only been down 8% since the start of the year.

Here’s a snapshot of today’s actions from luckEveryday CEO:

• S&P 500 futures It rose 0.3% this morning.
• Japanese topics It rose 1%.
• Stoxx Europe 600 Early trading increased by 1%.
• UK FTSE100 It rose almost 1%.
• ChinaThe two main indices were flat.
• Hangsen in Hong Kong An increase of 0.2%.
• Indian Nifty 50 It had risen by more than 2%.

But it’s not all blue sky and normal sailing

USD It fell for the fifth consecutive day, as tracked by DXY, an index representing a basket of major trading currencies. The dollar has fallen nearly 8% this year. Looking at it, in the second half of 2022, the dollar reached nearly parity with the British pound, but today Sterling will buy $1.32.

The weakness of the dollar is indication that in some way investors are moving money from the US

The exit is so serious that some analysts are beginning to question the role of the dollar as the global “reserve currency.”

“At the heart, USD’s weaknesses reflect a shift in the changing “risk” of “structural” “risk” with the US, which is seen as dismantling the current international trade system and the capital flow system it has created itself. How would USD be preferred if the US itself cannot count as a reliable port in a turbulent world? ” Macquarie analysts Thierry Withman and Gareth Berry wrote in a recent note to clients. “The status of USD as a reserve currency has always been a “treaty” and has been part of its “practicality” given the stability of US institutions. ”

The chatter about the US behaviour like an “emerging market” has not disappeared either. “Experienced investors recognize this pattern, something that is usually seen in emerging market crises when investors lose confidence in the country’s government and lose the ability to serve their debts. Joachimukmen of Panmur Liberam wrote yesterday.

The US bond market is certainly struggling to leave the dollar

High yield corporate bond market I have it The ground to stopwith zero publication since Trump’s “Liberation Day.” The private equity sector relies heavily on junk debt to fund acquisitions, and Freeze threatens the cash lifelines of high-risk companies that cannot survive without debt funding.

And China may be selling US bonds. That’s not clear Exactly what’s going on. China owns many of the US Treasury departments, so selling them would hurt Beijing as much as Washington. That being said, causing damage to the US bond market is a pretty good way to fight a trade war.

Combination of this event– According to Goldman Sachs, investors are rare to leave US stocks, bonds and dollars at once. Before last Wednesday’s rebound, during a massive “risk-off” shift across assets before the S&P 500, US 10-year bonds and dollars were sold together. Episodes like this were more common in the 1980s, two shorter episodes since the 1970s and the 1980s, written by his team and written by his team. luck.

This story was originally introduced Fortune.com