Have you already checked your share depot today? The new customs madness from the US lets the stock market fairs crash violently. Experts are afraid of an end of free trade, as we know it …
Investors will now suffer! The European lead changes admitted considerably on Thursday after the customs announcements by US President Donald Trump. The Asian market also experienced a real slaughter. The Euro Stoxx-50 and the Dax have fallen to the lowest level since the beginning of February. A goal does not seem in sight. The ATX also lost almost two percentage points shortly after the opening.
Stephen Dover, market strategist at Franklin Templeton, spoke about the end of the free trade age. Trump’s rates are generally much higher than expected. The stock markets responded with high losses worldwide.
American companies also suffer
American companies such as Nike, which mainly produce abroad, are now sliding into the bottomless. The textile industry in particular is extremely influenced by the general rates. This has to do with the strange calculation method of the United States. The stock of the American giant is already ten percent less than 24 hours earlier. Other cult brands such as Levi Strauss also lubricate.
Even before Trump’s new announcement it went badly on our exchanges:
Economists worldwide respond with horror to the apparently random attachment of the rates, which, unlike announced, are not based on rates on the entry of the US. So work mutually. Instead, the calculations are based on a factor that Trump has long been in mind: the American trade deficit compared to other countries – that is, the difference between export and import.
In short: the higher the requirement among Americans, the higher the import duties. From the White House, criticism only says in the style of Noord -Korea: “President Trump’s brave trade measures ensure praise.”
For the European Union, this means that the export of its member states to the United States will be occupied by 20 percent from next week. The import from Great Britain must be taxed at 10 percent and that from Switzerland by 31 percent.
Gold remains stable
On the other hand, safe investment gates such as gold and government bonds are purchased. The latter also benefited from the expectations that the central banks could respond to the economic consequences of rates with important interest rates. The return on the bond markets came back accordingly.
Banks responded with considerable discounts to European stock markets. The European Geldhuizen had benefited from the higher interest rates in the eurozone in recent years. Technology, industrial and basic materials were also very weak.
There were growth in papers from companies that are considered profiteers of lower interest rates. Real estate shares and supplier were therefore found among the clear winners of the new customs Madness of the “New York Master Builder” Trump.
The Chinese Ministry of Commerce asked Washington to “withdraw the new rates immediately” and warned that they “would endanger the worldwide economic development” and harm the interests of the United States and international supply chains. It called for the dialogue and added: “There is no winner in a trade war, and there is no way out for protectionism.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
