Trump’s aggressive tariffs — including a stunning 104% duty on Chinese goods — have triggered market dislocation. But what’s more alarming is the erosion of faith in traditional safe havens. Familiar sanctuaries are no longer safe.1. Dollar DethronedOnce the king of currencies, the USD has lost its shine:Down 5% YTD, despite rising yields.State Street’s Michael...
FX options trading is booming as investors hedge against tariff uncertainties. With new reciprocal tariffs expected on April 2, demand for FX options—contracts allowing investors to buy/sell currencies at preset rates—has surged.📈 Key Trends & Market Moves:✅ Volatility Drop: Lower FX volatility has reduced option costs by 16%-17% (EUR/USD & USD/CAD).✅ Soaring Volumes: OTC EUR/USD...
As the U.S. approaches the July 9 expiry of Trump’s 90-day tariff pause, bond investors are showing renewed confidence in high-yield debt, diverging from the panic seen after April’s “Liberation Day” announcement.📉 Back in April, high-yield credit spreads hit 2-year highs, but since then have tightened by 149 bps, reflecting stronger market sentiment (ICE BofA...
In the week ending July 2, U.S. equity funds saw their strongest inflows since November 2024, driven by renewed optimism in AI-linked stocks despite looming trade tensions.📊 Key highlights (LSEG Lipper data):$31.6 billion flowed into U.S. equity funds — the largest weekly net inflow since Nov 13, 2024.Large-cap funds dominated with $31.04 billion inflows —...
The BRICS bloc — comprising Brazil, Russia, India, China, South Africa, and recently expanded members — is set to announce a new investment guarantee fund backed by the New Development Bank (NDB). The goal: lower financing costs and unlock private investment in developing countries.🔸 Modeled after the World Bank’s Multilateral Investment Guarantee Agency (MIGA), the...
Despite market gyrations and U.S. trade policy uncertainty, hedge funds delivered positive results in the first half of 2025, according to a new report from Goldman Sachs and sources familiar with fund performance.📈 Key Highlights (H1 2025):Stock-picking hedge funds: +3% in June, +6% YTDSystematic equity funds: −0.68% in June, but still +11.91% YTDS&P 500 and...