Markets Roiled by New U.S. Tariffs: 28-Hour Recap
In the past 28 hours, global financial markets have reacted sharply to the U.S. implementation of sweeping reciprocal tariffs, targeting over 60 countries with adjusted rates ranging from 11% to 50%. The move, aimed at correcting persistent U.S. goods trade deficits, has rattled investor confidence and sparked fears of a global trade slowdown.
Key Highlights:
Euro behaving diferently than its usual. It has many reason behind of it but I try to focus to one biggger reason: Why euro is getting stronger once we see Indexes GER30, SP500 etc getting sold ?
China is dumping US Treasuries and selling the USD proceeds daily?
How we can verify this? - We have a few tools altough its not realtime data but can confirm our suspition
1. Track China’s Holdings of US Treasuries
Source: U.S. Treasury’s Major Foreign Holders of Treasury Securities report
Link: home.treasury.gov → Data → Reports → TIC Data
Frequency: Monthly
Note: A significant drop month-over-month can indicate "dumping."
2. Monitor U.S. Dollar Flows and FX Activity
Sources:
SWIFT reports (used in interbank transfers)
IMF’s COFER database (Currency Composition of Official Foreign Exchange Reserves)
Bloomberg Terminal or Reuters (for real-time data)
3. Watch USD/CNY Exchange Rate Movements
If China is selling off USD, this might put downward pressure on the dollar.
Use platforms like TradingView, Investing.com, or Bloomberg to monitor this daily.
4. Observe China’s Balance of Payments and Reserves
Source: People’s Bank of China (PBOC)
Significant reductions in foreign exchange reserves or changes in asset composition may suggest reallocation from USD assets.
5. Check Daily Treasury Auctions and Secondary Market Data
Platforms like the Federal Reserve Bank of New York or MarketWatch can provide insight into demand for Treasuries.
Large sales or weak demand can sometimes reflect foreign selling.
In the past 28 hours, global financial markets have reacted sharply to the U.S. implementation of sweeping reciprocal tariffs, targeting over 60 countries with adjusted rates ranging from 11% to 50%. The move, aimed at correcting persistent U.S. goods trade deficits, has rattled investor confidence and sparked fears of a global trade slowdown.
Key Highlights:
- U.S. Stocks Dip: The S&P 500 fell 1.9%, while the Dow Jones lost over 600 points amid fears of retaliatory tariffs and rising import costs for U.S. firms.
- Tech Hit Hard: Tech giants with supply chains linked to Asia, particularly China (now subject to a 34% tariff), saw sharp losses. Apple and NVIDIA shares dropped 3.2% and 4.5%, respectively.
- Dollar Mixed: The U.S. dollar strengthened against emerging market currencies but weakened against safe-haven assets like the Japanese yen and Swiss franc, both countries also affected (24% and 31% tariffs, respectively).
- Commodities Volatile: Oil prices slid 2.4% on concerns over reduced global demand, while gold surged past $2,130 as investors sought shelter from market instability.
- EU Response: The European Union, facing a 20% U.S. tariff, announced it is "evaluating proportional measures." European stock indexes fell by an average of 1.5%.
- Asian Markets Plunge: Major indexes like the Nikkei and Hang Seng dropped 2.1% and 3.3%, respectively, reflecting panic over trade disruptions.
Euro behaving diferently than its usual. It has many reason behind of it but I try to focus to one biggger reason: Why euro is getting stronger once we see Indexes GER30, SP500 etc getting sold ?
China is dumping US Treasuries and selling the USD proceeds daily?
How we can verify this? - We have a few tools altough its not realtime data but can confirm our suspition
1. Track China’s Holdings of US Treasuries
Source: U.S. Treasury’s Major Foreign Holders of Treasury Securities report
Link: home.treasury.gov → Data → Reports → TIC Data
Frequency: Monthly
Note: A significant drop month-over-month can indicate "dumping."
2. Monitor U.S. Dollar Flows and FX Activity
Sources:
SWIFT reports (used in interbank transfers)
IMF’s COFER database (Currency Composition of Official Foreign Exchange Reserves)
Bloomberg Terminal or Reuters (for real-time data)
3. Watch USD/CNY Exchange Rate Movements
If China is selling off USD, this might put downward pressure on the dollar.
Use platforms like TradingView, Investing.com, or Bloomberg to monitor this daily.
4. Observe China’s Balance of Payments and Reserves
Source: People’s Bank of China (PBOC)
Significant reductions in foreign exchange reserves or changes in asset composition may suggest reallocation from USD assets.
5. Check Daily Treasury Auctions and Secondary Market Data
Platforms like the Federal Reserve Bank of New York or MarketWatch can provide insight into demand for Treasuries.
Large sales or weak demand can sometimes reflect foreign selling.
Trade active
Monthly Releases and Archives of Treasury International Capital (TIC) Data {financial flows across-U.S. border}Next release: 04/16/2025 at 4:00 p.m. in Washington D.C. (Press releases are available first on the "Press Center" webpage.)
NOTICE on DATES: When Federal Government offices in Washington D.C. are closed on a release date, that release will be rescheduled after the offices reopen.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.