Black Monday on Europe’s stock builds: more and more investors are withdrawing from risky facilities. The reason is the care of the effects of the customs circuit of the US President Donald Trump. The ATX and ATX Prime fell from the retail trade in the first ten minutes.
The ATX was 3483.58 points, which has been the lowest level since November. The ATX Prime lost 7.38 percent to 1748.77 points. The Euro Stoxx-50 lost 6.3 percent to 4573 points. In Frankfurt the Dax fell 7.3 percent to 19,127 units – initially the German leading index was even more than ten percent. The Japanese Nikkei-225 closed 7.8 percent lighter. The Hang Seng index of the special administrative zone Hong Kong collapsed by 11.8 percent, but was not traded here on Friday.
The oil prices fell, gold price stable
The oil prices continued to slip on Monday, the golden prize stabilized. The government bonds that are considered safe continued their price rally. “Forget the markets,” Trump said on Sunday. “I don’t want something to go down, but sometimes you have to take medication to cure something.” He was only ready to negotiate about the release of rates if the trading partners would lower their surpluses with the US.
The rates would dominate the agenda this week, analysts of Deutsche Bank said. The big question, however, is which retaliation measures other countries can take. The EU advises on this on Monday. It is currently considered that a first package of a maximum of $ 28 billion will be determined. The pressure can, for example, be built up by the fact that American companies are excluded from European public markets, according to the EU industrial commissioner Stephane Sejourne.
Customs up to 24 percent
Trump’s government has introduced new rates with a flat rate of ten percent in imports from all countries. On Wednesday, higher rates must follow for those countries with which the US has a particularly large trade deficit from Trump’s point of view. In Japan this is 24 percent, for EU countries 20.
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.
