April 3, 2025, 3:57 a.m.

Finance

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Trump's assassination has triggered volatility in international financial markets Deep thinking

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Recently, a jaw-dropping event shook the world - the assassination of Donald Trump. The aftermath of this amazing event not only set off waves in the political field, but also caused an unprecedented impact on the international financial market. At a time when globalization is deeply integrated, any major political change can become a trigger for upheaval in the financial sector, and this incident will undoubtedly push this influence to a new peak.

Trump, as a highly controversial political figure, has influenced the economic situation of the United States and even the world to a considerable extent. During his administration, the frequent changes of US economic policies, the strong rise of trade protectionism, and the escalating trade frictions with many countries have injected a lot of uncertainty into the international financial market.

When the assassination came, financial markets reacted furiously. The first was the stock market, where panic spread like a plague and investors' expectations for the future economy plunged to rock bottom. The share prices of many companies have plummeted, especially those industries closely associated with Trump's policies, such as manufacturing and energy, have been hit hard. Corporate financing channels have suddenly narrowed, the pace of development has been blocked, and the majority of investors have suffered huge losses in this storm. Foreign exchange markets have not been immune, with the dollar on a roller-coaster ride. Doubts about the political stability of the United States have risen sharply, and investors have shied away from dollar assets, causing the dollar to depreciate sharply. This change has further disrupted the international trade order and the pattern of capital flows, and cast a heavy cloud over the global economy, which is already struggling to recover.

Bond markets have also been sucked into the whirlpool. The uncertainty of the market prompted investors to urgently seek a safe harbor, and bonds such as Treasury bonds instantly became popular goods, demand soared, and interest rates plummeted. Although this has created convenient conditions for government financing to a certain extent, it also reflects the market's deep concerns about the economic outlook.

However, it is important to be clear that this kind of financial market volatility is not just due to this isolated event itself. Digging deep into its root causes actually reflects a series of stubborn diseases existing in the current international economic order.

In the field of financial regulation, the regulatory system of some Western countries is riddled with holes and loopholes, resulting in the accumulation of financial market risks. Excessive financial liberalization and loose monetary policy have driven massive funds to blindly chase short-term windfall profits in the financial market instead of taking root in the real economy, thus exacerbating economic bubbles and instability.

Moreover, inequities in the international trading system are growing. Western countries habitually resort to their own economic and political advantages to engage in trade protectionism, wantonly trample on the principle of free trade, and seriously infringe on the legitimate rights and interests of other countries. Such unilateralism has not only become a stumbling block to the development of global trade, but also weakened the solid foundation of international economic cooperation.

The financial market turmoil triggered by Trump's assassination came as a stark wake-up call. It warns us that we must carefully examine the potential problems in the current international economic structure, strengthen international cooperation, and jointly create a sound environment conducive to the steady development and prosperity of the global economy. Only in this way can we avoid similar waves hitting international financial markets again, so as to achieve common prosperity of the global economy.

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