(Reuters) – The route continued on Wall Street on Friday after the NASDAQ classification China sets fresh tariffs on all US products in response to the trump card.
S & P 500, Dow and NASDAQ [.N] closed more than 5% of each. Losses are accelerating after the Federal Reserve chair, Jerome Powell said that the new tariffs of President Donald Trump “are expected to be larger,” and there will be high inflation and slow growth for the economic bank.
World shares sell money, which flooded low-risk assets, such as US government bonds, even as safe shelter gold, which has been recycled by a slide of crude oil on Thursday.
US Treasury Yields dropped sharply [US/] After the Trump tariff plan on Friday, against the China’s tariff plan, which kept markets by the guard, although the denial was limited after the strong US work.
Quotes.
David Safe, Chief Economist of Markets Developed in New York
“The market is still digested by the big deal of uncertainty and I think that he is also digested that both Trump and Powell have become clear that the cavalry will not be able to jump immediately.
“We have a long way to fines. Let’s leave it. And we are also far from the FEED’s executioner, although the fine can take all that can do what is happening.
Mike Mayo, Bank Analyst, Wells Fargo, New York
“I think that the sale of this market is a new opportunity for banks to show how flexible they have become after the financial crisis.
We can expect banks to increase their reserves for loan losses due to high risk of decreasing. The volume of reserves will be higher, as they now have to take into account the potential losses throughout the lifetime of the loan, which is higher than short-term potential losses.
“We also see a stroke that makes decisions, as long as there is more clarity, so will definitely affect investment banking income, consulting and capital markets, will probably fall.
“Seeing a multiple crisis, I still don’t see signs of great stress for the sale of market. But given his greatness. The question is how short-term pain is.
Jeff O’Connor, Head of Market Structure, Author, Summit, Summit, NJ
“The uncertainty of tariffs is most likely to mark markets for a predictable future. The main economic indicators and market mood indicate concerns about the breakthrough and decline.
“From an institutional point of view, participation and volumes are significantly reduced, in particular, compared to the previous year, while in the near future the conditions will return to its former health.
Michael Rosen, Manager of Chief Investment, Investment of Angeles, Santa Monica, California
“The whole idea of ​​tariffs and trade policy is such an integral part of Donald Trump psychology, I don’t see. He can say that he can measure his position. “
“There are about 5,000 technical support for S & P, I will not surprise me to see that test, and then we will explain to our economy.
Brian Betty, economist, Boston College, Newton Massachusetts
“If the tariffs are becoming more part, at least you will have some chance of business to restore their plans.
Joe Rinaldin, President and Chief Investment Manager: Quantum Financial Advisors, Rockville MD
“Powell’s position is a very half of the road, benign. However, they are not going to choose a choice but at least once in the summer. Taiwan, Japan – Make about the face and say. “Here is the white flag, I’m surrendered. What do you want? I think you will see that this market will turn around one day. So I don’t think it’s wise to be a dissolution position for this (time if you have and you have, and you have a margin call.
Benjamin Ford, G10 FX Strategist, Macro admire, London
“There was only a handful of time when the avoidance of risk was worse than there was currently, one was a great financial crisis.”
“Not all countries are going to answer. We know that Europe has had something in the pipeline, but they have not moved at all.
“Latin America is the most attractive place to invest right now. Both of how cheap shares and bonds (investors) can take incredible exchange rate differentials. “
Carol Schleif, General Market Strategy, BMO Private Wealth, Minnesapolis, Minnesota
“It simply came to our notice then. The people moved side by side to see how preliminary negotiations / vengeance on how “sufficient”
“No one wants to increase the long positions on this weekend with more tariffs that start with more titles for weekends.
Kevin Philip, Partner, Bel Air Investment Consultants, Los Angeles
“When the sellers are this violent, it increases the likelihood of structural matters that can be cascaded events, but I still don’t see it.
“I’m focused on everything I think is a chicken game wins Trump I think we see the” Vietnam “parade this morning
“I do not think that (Trump) is a very tolerant of the mass exchange. He will see his popularity tank, and it will endanger his whole agenda “
“If he had no intention to negotiate, the tariffs would be a complete disaster for the low and middle-income income of this country. Many voted for him.
“I don’t see any way out of that if you have not deals with the exchange rate”
Peter Cardillo, Chief Market Economist, Sparta Capital Securities, New York
“(Federal Reserve Chair Jerome Powell does not really say anything new. He says the incoming data are still strong, and the labor market is balanced. “
“Of course, there is a greater risk, now we have more clarity on tariffs. He also noted that inflation tariff inflation should be temporary. He did not really change his position. “
“I think his comments will disappoint for those who think that food is going to walk soon.”
Gene Goldman, General Investment Institute of Investment Management, El Segundo, California
He said that the consequences of tariffs will be higher than expected. He also testifies to the fact that inflation will be less transition.
“This suggests that Fed will not reduce the interest rate as far as the market hoped. reading between the lines if it is slowly worried about it.
Chris Scycluna, Head of Economic Research, Daiwa Capital Markets, London
“We have mass destruction that continue in the markets, except for established income, which has a mass rally.
Step Roda, Funding Market Senior Analyst, Capital.com, Melbourne
“I think there are fears that the trade war has killed a Japanese reflection. It is the expression of the slowing down of the short-term economy, which is expected due to tariffs.
Fred Newman, Chief Asia Economist, HSBC, Hong Kong
“The world has changed, and several farms respond to these changes as strong as Japan. Weaker dollar and a slump of world trading.
“The Obstacle of the Central Bank of Japan has surely increased in the back of US tariff campaigns, but BoJ should not yet be calculated that prices are being pressured in Japan.
Sean Taylor, Cio, Matthews Asia, Hong Kong
“The fall of Japanese banks has more to do with the fact that they have done well with 1% of BoJ campaigns by 1%, so much for two years.
Michael Makdad, senior equity analyst, Morningstar, Singapore
“There is a binary scenario. Or US tariffs remain as declared or reality is not so extreme.
JON ON ONAAR, Senior portfolio manager, paint asset management, Singapore
“In Japan, banks have caught a Waning Rate Hike expectations that match the probability of raising the conference with the market.
“From our point of view, the key trade is real estate and construction. Both sectors have no direct tariffs, are lower longer.
(World Finance and Market Report, which violates the news team; has been compiled by Alden Bentley, Tom Spirit, Darunt Ranasingehi and Amanda Cooper)
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