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US economic indicators: growth and business activity tapering

22 0
04.03.2025

The sudden change in the US President’s plan to implement tariffs starting March 4 instead of next month has unsettled the markets, leading traders to reevaluate their risk portfolios and safeguard their capital.

This resulted in a sell-off in Asian markets, with Japan’s stock market falling by 3 percent and Hong Kong’s by nearly 2.8 percent. Despite this, European and US markets closed positively.

The asset market is facing significant pressure, with Bitcoin plummeting nearly 27 percent before rebounding by 5 percent. Gold saw a decline of over 3 percent in value before a slight correction, finishing at US$ 2858.

In contrast, US bonds, DXY and the US Dollar emerged as the true beneficiaries. US 10-year yields fell for the seventh consecutive week, decreasing by 17 basis points to 4.26 percent. The recovery in the fixed income market could be attributed to bonds being a safe and highly liquid asset.

With rising inflation eroding purchasing power, currently, the returns on bonds held until maturity are considerably higher.

US economic indicators suggest that growth and business activity are tapering. Additionally, there is a........

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