Global Markets React to U.S. Trade Policies Amid Economic Concerns

According to Odaily, QCP Capital's latest analysis highlights significant market volatility triggered by the initial trade policies of U.S. President Donald Trump's administration. The bond yield curve has shown a bearish flattening, with the 2-year yield rising and the 10-year yield falling, indicating concerns over short-term inflation and the long-term risks of a trade war on global economic growth. The widening gold price spread between New York and London reflects not only the unwinding of popular EFP arbitrage trades but also suggests potential logistical challenges in transferring gold between vaults. This situation underscores the uncertainty surrounding the possible expansion of tariff scopes. The cryptocurrency market has experienced a sharp sell-off, serving as a risk indicator before the U.S. market opens. Nearly $2 billion in liquidations occurred, with Ethereum (ETH) experiencing a larger decline than Bitcoin (BTC). Analysts attribute today's risk-averse sentiment primarily to cross-asset portfolio rebalancing rather than events affecting a single asset. Market volatility is expected to persist until the conclusion of trade negotiations between the U.S., Canada, and Mexico, as well as the implementation of the European Union's tariff policies.