Market Rollercoaster: Trump's Return Spurs Unprecedented Shifts

President Trump's return to power has led to volatile global markets, with dramatic shifts in stocks, bonds, and currencies. Amid trade wars and economic uncertainties, investors face the prospect of recession as global bond yields fluctuate and emerging market currencies gain unexpected strength.

Most investors anticipated turbulence this year with U.S. President Donald Trump reclaiming power in the global economy, yet few foresaw the dramatic market fluctuations experienced.

While global stock indices remain steady, volatility metrics have moderated, overshadowed by major underlying shifts. Gold has witnessed its best quarter since 1986, largely due to Trump's trade policies, and the dollar struggles with its worst start since 2008. Meanwhile, U.S. tech giants have lost substantial value compared to their Chinese and European counterparts.

Chief Investment Officer of Candriam, Nicolas Forest, highlighted the market's swift shift from inflation risks under Trump's 'America first' policies to looming recession threats. Global bond yields have responded accordingly, with significant fluctuations in U.S. Treasuries, German Bunds, and Japanese JGBs.

(With inputs from agencies.)