Market fluctuations are declining as investors brush the Donald Trump threats

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Market fluctuations have decreased to nearly the lowest levels per year, and stocks are trading in record levels, as anxiety dissolves Donald Trump’s tariff despite the escalation of his commercial war.

The Vix index, a scale of expected fluctuation in the short -term in S&P 500, has decreased to 16, which is much lower than in the long term about 20 Volatility In the US government bond market, it is close to its lowest level in three years.

Meanwhile, NVIDIA led an increase in technology shares as the chips maker reached an unprecedented assessment of 4 American on Wednesday.

These movements come even when the US President launched a barrage of new trade threats this week, including a 50 percent tariff on copper, and 200 percent on the drugs and fees sector on countries including Japan, South Korea and the Philippines.

“I don’t care about definitions anymore,” said Max Keitner, head of the HSBC multiple asset strategy. “All this is imposed on himself. What prevents them from saying, let’s give him another three months?”

Trump’s latest movements on customs duties bring their levels closer to what some analysts in the sharp duties that were unveiled in early April have expected dozens of American commercial partners.

However, these “mutual” initial definitions were later postponed and re -negotiated after they were moved, then Trump retreated to the deadline for the implementation of duties from July 9 to August.

As a result, investors now take the threats of the current American president less serious than they have taken his early speech, and they are betting that the president will eventually retract the customs tariff that seriously hurts our growth.

Trade has become known in the market as “Taco”, and it is an abbreviation for “Trump always goes out.”

“May 12) ascending, this was the great game change,” Keitner said, referring to the date that the United States faced a deal with China, as the two sides sharply reduced the previously planned definitions, prompting investors to return to risky assets.

“We have learned that there is Trump,” he added.

In the currency markets, Trump’s threat by 50 percent on Brazil on Wednesday, but the broader markets are calm.

The indicators of the CME group for the expected swing in exchange rates such as European countries have declined significantly from its highest levels in April, which are almost at the level where it was circulated at the beginning of the year.

“There is an opinion that the Trump administration is unlikely to want to repeat the disruption resulting from the” liberation day “tariff in early April.

“I can see that it is tested, but I expect the Taco trade to remain with any fluctuations that offer the opportunity to buy,” said Matthias Sheber, Head of the multiple assets department in the United States of America.

But investors have warned that the heavy feelings in the stock markets themselves can encourage Trump to increase his aggression on trade more than the market has expected at the present time.

“With the presence of US shares at a record level, the budget has risen, there is a risk that can encourage Trump to climb more with the customs tariffs than expected,” Hardman said.

Some investors are more concerned that the market is priced in a degree of satisfaction, with the S&P approaching standard levels and trade in the price ratio to profits to 24.

“What worries me is that there is no great safety margin now in assessments,” said Kasper ElMGREEN, chief investment in stock and fixed income in Nordea Asset Management.

“We have the greatest increase in customs tariffs in the living memory of anyone, but (the market) takes a very comfortable look about what this might do,” said Elmgreen. “I am concerned about not worrying.”