Asian Markets Extend Losses As Trump Fears Build

Asian markets fell on Wednesday, November 13, as investor concerns grew about the possible economic impact of Donald Trump’s presidency, with fears that his policies might spark US inflation and disrupt global markets.

Since Trump’s re-election last week, market analysts have expressed fear that his tax cuts, import tariffs, and regulatory rollbacks could drive up prices, which has already lifted the dollar.

The dollar continued to rise, reaching a one-year high against the euro and surpassing 155 yen as speculators reduced their expectations of Federal Reserve rate reduction. Markets now expect only two cuts by June, compared to four originally predicted, reflecting traders’ reactions to Trump’s expected economic policy.

As speculators gathered around Trump’s pro-crypto campaign pledges, Bitcoin flirted with $90,000 before hovering just above it, leading to forecasts that the cryptocurrency might soon reach $100,000.

Following a brief surge after Trump’s victory, Asian markets have since turned around in response to reports of his cabinet nominations, which have included a number of well-known China hawks.

As Beijing seeks to support its own economic growth, this scenario has stoked concerns about a resumption of the trade war between the United States and China.

Chinese markets have responded carefully to the plethora of measures unveiled in September, with investors dissatisfied by the absence of new initiatives.

Asian equities, from Hong Kong, Shanghai, and Tokyo to Seoul, Sydney, Singapore, and beyond, all closed lower. The retreat followed Wall Street’s recent falls, in which key indexes ended a run that set new records.

Looking ahead, the market is now focused on the impending October U.S. consumer price index data, which is projected to show a small uptick from the previous month.

Analysts will closely study the statistics to determine the Federal Reserve’s expected interest rate policy ahead of its December meeting, when it may contemplate modifications to borrowing costs following its recent rate reduction of 25 basis points in November and 50 basis points in September.

Global investors are keeping a tight eye on Trump’s policy proposals as markets continue to fluctuate, anticipating significant effects on the global economy.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli