Share markets worldwide fall through Trump's new trade conflicts

Share markets worldwide fall through Trump's new trade conflicts

The stock markets in Asia and Europe experienced a difficult day on Monday after Donald Trump imposed tariffs on Canada, Mexico and China. This news stoked a further violent trade war under the motto "America First", which could endanger global economic growth.

reactions of the stock exchanges

US shares were also exposed to a sales pressure, which was displayed by declines in the equity futures. "Handels War 2.0 begins", commented strategists from UBS in a message on Monday.

The Japanese Nikkei index closed by 2.7 % lower and the South Korean Kospi lost 2.5 % at the closing of the trade. The Hong Kong Hang Seng was largely stable. The Shanghai index was closed due to the celebrations for the Lunar New Year. The trade in the Chinese markets will be resumed on Wednesday.

Trump threatens to do further tariffs

On Sunday evening, Trump also threatened with additional tariffs on the European Union products and accused them of falling "completely out of the frame". On Monday morning, the European Benchmark Index Stoxx Europe fell by 1.4 %. The DAX fell by 1.9 %, as well as the CAC in France, while the FTSE 100 in London followed by 1.3 %.

economic effects

"Customs and counter -tariffs will have an inflationary effect and lead to weaker growth prospects - both are negative for stocks," said Mohit Kumar, economist at Jefferies. The US dollar achieved a record high -light against Yuan Chinese. "At the moment it looks like the dollar is the only winner," said Chris Beauchamp, chief market analyst at IG, an online trade provider.

Details on the customs increases

Trump announced a custom of 25 % at all imports from Mexico at the weekend and most of the goods from Canada and an additional inch of 10 % to Chinese products that are imported into the USA. These tariffs, which according to Trump are necessary to combat the influx of migrants and fentanyl to the USA, are to come into force on Tuesday. Canada and Mexico have already announced retaliatory tariffs, and China has declared that they want to contest the measures at the world trade organization.