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Trump Tariffs Jolt Jewellery Stocks: Titan, Kalyan, Senco See Mixed Trade

Trump Regime: Opportunities of transformation in the midst of Chaos

Trump Regime: Opportunities of transformation in the midst of Chaos

Overview
On 20th January, 2025, Donald Trump became the US President for the second time. Before taking his oath on Monday, an article was published by the Wall Street Journal regarding Trump not making any statement regarding tariffs matter on his first day of official authority. This resulted in the dollar going down and a hike in US stock futures. This indicated that the investors are relieved. However, he made an announcement of implementation of 25 percent of import tariffs on goods from Mexico and Canada by 1st February, 2025. This led to fall in US stock futures as well as rise in dollar indicating investors are nervous. This whole situation implies the impact of Trump’s news and actions on the markets and also indicates that such uncertainty will prevail in the upcoming 4 years as well. The Indian stock market has also been facing fluctuations since yesterday.

Trend of Crypto Coins
Before his official oath on Monday, he launched a meme coin known as $Trump. The price trend of this coin was quite volatile as first it spiked high and later fell at a rate. The same situation was observed in the crypto coin launched by Melania Trump which is known as $Melania. This overall trend shows how investors need to get ready for a ride of excitement and later nervousness in this uncertain cryptomarket and overall market.

This situation is not actually difficult for US investors as Trump and his allies understand and work for fulfilment of the needs of US investors. In contrast to this, other countries’ stock markets, especially countries like Panama, Canada, and Mexico, have to take cope unaided.

Policies of New Trump Regime
The current uncertainty in the market indicates strong unpredictability of policies implemented under Trump’s regime. Trump has constantly focused on matters such as tariffs, change in immigration policy, and increase in oil production. So far, his actions are aligning with his agendas during election campaigns. His focus has not yet shifted towards China but there is a high chance that it will move towards it. Apart from this, it seems Trump looks at tariff matters from the point of negotiation tool or strategy to gain upper hand. It is possible that he is trying to get compromises from other nations.

Trump’s ideas seem to move towards expansionism. Although, he looks like someone who is only focusing on domestic matters. He is considering taking over regions such as Greenland, Panama Canal, and Canada. It indicates his idea towards expanding territory of the United States as he mentioned about growth in wealth, expansion of territories, in his oath ceremony speech. Trump also seems to admire the work of Willian Mckinley as the US President. The US President William Mckinley took control of regions such as the Philippines and Gaum from Spain, and also Puerto Rico, and Cuba.

Trump believes that the United States is a special country. It should be allowed to do anything it wants, without considering its effect on the other economies in the world. This is also one of the reasons why he wants the country to leave the Paris Agreement, the OECD tax treaty and World Health Organization (WHO).

United States’ Dominance
In the shadows of all his strong speeches, the main purpose is to keep the supremacy of the United Stated in all aspects including dominance in the economy. Currently, China is facing economic issues. Despite this, it is one of the emerging economies in terms of technology hub. Trump’s regime wants to ensure that the United States is no longer in a falling state and it is approaching to become the biggest dominant nation in the world.

Trump looks at China as the biggest competitor of the United States. It indicates that the country’s focus will be on the Asian region. Countries in Asia such as Taiwan and India could possibly play a major role in his strategies. Though, the United States looks at Taiwan as a challenge for establishing its supremacy in the semiconductor industry. Trump also believes that European countries should give fees to the country for protecting them. These countries are highly dependent on the United States and now going through a state of fear that Trump might sign a peace agreement with Russia in regards to the Ukraine situation.

Chaos of Trump’s regime
There is a lot of unpredictability in Trump’s ideas and his actions. He wants to stay away from wars but he was the one who aided the ceasefire in the Gaza region. Currently, China is suffering from an economic situation of capital outflow and deflation. In this situation, it is possible that China will agree with tariffs changes by the United States. Apart from this, there are several conflicts of interest among various groups. The people focusing on strengthening the domestic market have different views compared to ideas of supporters of Trump’s views and outlook of international entrepreneurs like Elon Musk. One of the instances of this situation is the H1-B visa case.

In conclusion, Trump’s regime will surely bring a lot of chaos in the upcoming four years. However, there is a chance of opportunities for reforms in this situation of uncertainty.

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Gold set for best month in 4 years

Gold set for best month in 4 years

On 30th April, the gold prices had a surge, en routing to its best month in the last 4 years. This is because of the increase in expectations about the monetary ease provided by the central banks and the continuous stress over the global recession which increased the demand. Spot gold showed a surge of 0.2% at $1,713.75 per ounce by. The US gold futures showed an increase of 1.1% to $1,732.10 per ounce.

 

How the gold prices surged?

Eugen Weinberg, the Commerzbank analyst stated the immense monetary support received at the movement is helping gold. Regardless of the increasing risk appetite, the gold prices stayed above $1700 ounce even though it has faced pressure from the equity markets. Carlo Alberto De Casa, Kashif analyst of Activtrades said to the media that the investors will remain confident about quick solutions for the coronavirus. The central banks will be forced to print a large amount of money leading to hyperinflation in such economic turmoil.

 

Interest rates:

United States Federal Reserve preserved the interest rates and it should be left unchanged for sometime. The unexpected monetary influence provided by both the European Central Bank and the Federal Reserve will probably increase the demand for gold in the future.

Over the last six weeks, the European Central Bank left the interest rates unchanged after revealing various stimulus measures including a plan to buy 1.1 trillion euros worth of debt this year. The Federal Reserve kept the interest rates near zero on April 29. They also promised to extend the emergency series of measures needed to help the battered and bruised economy.

In the first quarter, the US economy contracted at its shortest pace since the Great Recession. In the second quarter, it is likely to show a more sharper contraction. The Bullion showed an increase of more than 9% in the last month. It is boosted by several stimulus measures from the central banks to handle damage caused from the corona virus outbreak. The unchanged lower interest rates will reduce the alternative cost of holding non yielding gold. It is always considered as a risk against inflation and canker currency.

 

 

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