((Translation automated by Reuters, please consult the non-responsibility clause https://bit.ly/rtrsauto))))
*
Investors are turning to refuge values, the Swiss franc has been at its highest level for 10 years
*
Gold exceeds $ 3,200 an ounce and reaches a record level
*
The fall in bonds resumes, investors fleeing American assets
(Update with the opening of European markets) by Ankur Banerjee and Amanda Cooper
Global actions fell on Friday and the dollar fell after a brutal week marked by the breakdown of a total trade war and a collapse of the bond market which rekindled fears of recession and shaken confidence in American assets.
The dollar has fallen at its lowest level for 10 years against the Swiss franc and its lowest level for six months against the Yen, investors seeking other refuge values. The euro jumped 1.7 % to 1.13855 dollars, a level reached for the last time in February 2022, and gold, considered as a secure asset in times of crisis, has reached a new record.
Investors are concerned about the escalation of the trade war between China and the United States after US President Donald Trump increased customs duties on Chinese imports, actually bringing them to 145 %.
China retaliated by increasing its customs duties in the United States with each increase in Trump, which raises fear that Beijing will increase customs duties beyond the current 84 %.
The fall in American treasury bills has accelerated during Asian hours, the yield of good to 10 years
US10YT = RR increasing at 4.45 %, winning around 45 base points during the week, the highest increase since 2001, according to LSEG data.
“There is clearly an exodus of American assets. A currency market and downward bonds is never a good sign,” said Kyle Rodda, principal financial analyst at Capital.com. “This goes beyond taking into account a slowdown in growth and commercial uncertainty
In Europe, the shares have reduced initial gains, leaving the Stoxx 600. Stoxx down almost 1% over the day and planned for a drop of 1.7% this week, one of the most volatile ever recorded.
-In Asia, the Nikkei .N225 from Japan dropped 4.3% over the day, while shares in South Korea .KS11 fell by almost 1%.
US Treasury Secretary Scott Bessent tried to appease skeptics by declaring at a meeting of the cabinet on Thursday that more than 75 countries wanted to start commercial negotiations. Trump himself expressed hope for an agreement with China, the second world economy.
But James Athey, manager of fixed income securities at Marlborough, said the prospects remained more uncertain than a month ago. “There are still so many questions unanswered and without possible answer”
The American term contracts for the S&P 500 ESCV1 and the NASDAQ NQC1 remained generally stable during the day, but the transactions were very irregular, the two having dropped up to 2 % earlier before going up to 1.6 %.
The concern aroused by customs duties caused a new rush to the shelters, after a brief but massive relief movement following Trump’s decision on Wednesday to temporarily lower the customs duties imposed on many countries.
“Short -term prospects for global risk assets remain uncertain given the concerns about growth and inflation, fluid feelings and rapid developments in trade and pricing,” said Vasu Menon, director general of investment strategy at OCBC Bank in Singapore.
Recession fears
A violent movement of liquidation of the American Treasury this week, evoking the “rush to the liquidity” of the COVID era, rekindled fears of fragility on the largest bond market in the world.
Obligation yields at 30 years US30YT = RR have reached 4.90 %, on the way, knowing their highest weekly increase since at least 1982, according to LSEG data.
US/
“What we observe in the US bond markets has nothing to do with the concerns related to inflation,” said Michael Krautzberger, Global CIO Fixed Incometed at Allianz Global Investors.
Mr. Krautzberger said that the evolution of treasury bills could reflect investor fears that a strong slowdown in growth, or a recession, “aggravates already unbearable American budgetary prospects”
“On the other hand, we could simply attend a rebalancing among institutional investors or deleveraging leverage.”
In raw materials, the gold XAU = reached a new record, increasing 1.1% to $ 3,210 per ounce. GOL/ GOLD
Oil prices increased on Friday, but still go to a second consecutive week in red on concerns about a prolonged trade war between the United States and China. The term contracts on Brent LCOC1 oil increased by $ 63.97 per barrel.
O/R
