After a “bloody” Thursday, a black Monday follows the international markets – of course the stock markets in North America are also affected. American investment banks warn: the risk of recession in the US has increased enormously.
The most important leading indices opened the third trading day in a row. At the start of the trade, the American index Dow Jones dropped another 3.8 percent of 3669.18. The market width S&P 500 slid to 4873.49 points in the first minute of the retail trade at the start of the week. The Nasdaq composite fell down to 14,931.36 points. All three most important indices on Wall Street were free on Friday in the six percent and thus completed a full weekly minus. The downward thrust on the US and other stock markets was activated in the aggressive customs policy of President Donald Trump in the last week.
European stock markets in a descent
The European stock markets also lost a huge land on Monday. Out of concern, investors continue to withdraw en masse from risky systems from risks of the consequences of US President Donald Trump. The Euro Stoxx-50 has fallen at the lowest level since August. Around 2.10 pm he noticed no less than 4.93 percent in the red of 4,637.96 points. In Frankfurt, the Dax rattled by 4.68 percent to 19,676.48 units – initially the German leading index in the early retail trade was even more than ten percent. The London FTSE-100 also gave up 4.68 percent to 7,678.04 points.
At 2.20 pm the ATX was no less than 4.47 percent weaker at 3,594.50 points and therefore at the lowest level since the end of December. At the start of the session he had even fallen more than seven percent. The leading index had already lost more than nine percent the two in previous days.
Trump stays on course, wants good offers from countries
How long can the downward trend continue? Nobody can seriously predict that. If the merchant blocks are set out further and more with rates, there is a risk of a global recession for a longer period. However, if the trade conflict is resolved, the lighting can quickly lead to an increase in stock markets. Much depends on whether the US President Trump is sticking to his course or can be moved to return. It currently looks like the first. The willingness to talk to the affected countries – in the case of “good offers” – this does not change.
The “$ dollar, which has long been damaged”, takes into account “a weekly dollars” via existing rates against countries that “exploit”, the Republican wrote on his social social platform. Trump called China as the “biggest perpetrator”.
The risk of an American recession increases to 60 percent
Given the customs policy, the economists from American banks expect an increasing risk of recession in the United States. The chance of this has risen from 35 to 45 percent, said Investment Bank Goldman Sachs on Monday. This is already the second increase within a week. The experts of JP Morgan now even bring the risk of a recession at 60 percent. They still went 40 percent for customs plans.
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.
