An unusual dynamic is unfolding in the global market, as many participants appear to have adapted to the unpredictable actions of US President Donald Trump and no longer react sharply to them.
Recently, the harshest tariffs — 145% on imports of Chinese goods — were postponed for another 90 days. This move was expected to support investors, but no dramatic changes followed. Overall, markets remained calm, and in some cases, there was even a pullback.
On Monday, August 11, all three major US stock indices recorded slight declines, a result that came as no surprise since both sides had already signaled in advance the extension of the tariff pause. Investors have become used to Trump’s “zigzags” and explosive decisions, so his threats, promises, criticism, and praise no longer have the same impact as before. For example, just recently, the president wrote about Intel CEO Lip-Bu Tan’s career path. “His success and rise is an amazing story,” the president said. However, only a week earlier, he had urged that Tan be dismissed.
This week, on August 12, Japan’s Nikkei 225 and Australia’s S&P/ASX 200 both set new records. The latter was supported by a rate cut from the Reserve Bank of Australia.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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