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The dollar moved towards the three -year minimum, and the US government bonds were under pressure on Monday as weak production data combined with growing warnings on the country’s debt for non -bribe investors.
The dollar decreased by 0.7 percent to the basket of its trading partners, bringing it closer to a three -year low level as a result of President Donald Trump tariffs “Liberation Day” in early April.
The Blue-CHIP S&P 500 index also plunged after ISM polling managers in the production sector, which was weaker than expected, 48.5 for a major level of 50 levels, which separates the extension and reduction. Then the benchmark returned some land to close the session 0.4 percent higher.
Gordon Shannon, a fund manager of twenty -year asset management, said the ISM data presented “a hint on the impact of uncertainty on the US growth”.
Francesco Pesol, who is Forex strategist in Ing, said the poll adds pressure on “already a very weak impulse in dollars”, consisting of “soft” demand for US treasures and re -escalation in trade tensions.
The profitability on 30-year state bonds of the United States increased by 0.03 percentage points to 4.97 percent, when the debt price fell, at the first trades after the Minister of Finance Scott Bavert transferred to assure the markets that the country “never gathered by default” amid increasing arrangements.
JPMorgan Chase Executive Director Jamie Dimon warned on Friday that the US bond market could “crack” under the weight of debt growth in Washington.
ISM poll was weaker than in the previous month, and the fourth consecutive drop in the index, in the last sign that Trump’s unpredictable trade war weighing the world’s largest economy. In the US and China have Charges that are traded In the last days, when the other side violated their trading truce.
The poll also revealed slowing supplies because the index based on the delivery of suppliers has risen to the highest level since June 2022.
“The confusion of trade policy makes it almost impossible for the supply managers to effectively create goods,” said Joe Brossulas, Chief Economist of the Tax and Consulting Firm RSM.
“It tells me that we may face a narrow place in terms of production, which will lack.”
Imports also decreased dramatically, and the manufacturers pulled the stocks they had collected for several months before new trade fees.
Economists have warned that these diminishing reserves provide only a temporary shield for import cost. “You can only count on this program for so long,” said Veronica Clark, Citi economist.
The US metals prices also risen on Monday after Trump’s announcement on Friday, the US will put a 50 percent tariff for steel imports and aluminum, doubled the previous level, which its administration delivered in March. The new levies must come into force on June 4.
Aluminum prices have increased, with a regional aluminum prize in the US in the Midwest by 54 percent. The steel futures traded on the COMEX had a more muted reaction, increasing 14 percent on Monday. Nucor and Steel Dynamics’s stocks rose 10.1 percent and 10.3 percent respectively.
