Catenaa, Tuesday, June 10, 2025-Global investors are pulling capital out of US markets at an accelerating pace, driven by mounting concerns over President Donald Trump’s tariff policies, a weakening dollar and fears surrounding the ballooning national debt.
The Financial Times and Shanghai Metal Market report a sharp move toward European and Asian assets, safe-haven currencies, and record-breaking gold prices.1
Analysts said simultaneous declines in US Treasury prices and the dollar point to widespread unease with the stability of US financial markets.
The 10-year Treasury yield surged to 4.45%, marking its largest weekly increase since 2001, amid what market-watchers described as forced liquidations and margin calls by hedge funds.
The dollar hit multiyear lows against the Swiss Franc and Japanese Yen, while the euro surged to its highest level since 2008 against the greenback, underscoring shifting investor preferences.
“There is a clear ‘sell America’ sentiment,” said Chris Weston, research head at Pepperstone, adding that the dollar’s long-standing safe-haven appeal has waned.2
FT reported that European bonds, particularly German bunds, have emerged as the preferred alternative, as capital reallocation intensifies.
Simultaneously, gold soared to an all-time high of $3,220 per ounce, reinforcing its role as a refuge amid geopolitical and fiscal instability.
Central banks, led by China, have ramped up gold reserves for a fifth straight month.
Nomura strategist Dominic Bunning said the eurozone could now benefit structurally from capital outflows from US markets.
As fears over trade wars and stagflation mount, global capital appears to be decisively rebalancing away from US exposure.
- https://www.ft.com/content/019a275c-ab14-4ac3-8a7e-68758dd234a8[↩]
- https://www.metal.com/en/newscontent/103274534[↩]
