Home » Stock markets slide around the world as Trump’s new trade war rattles investor confidence

Stock markets slide around the world as Trump’s new trade war rattles investor confidence

by

Stock markets in Asia and Europe slumped Monday after Donald Trump slapped tariffs on Canada, Mexico and China, sparking fears over another bruising ‘America First’ trade war that could hit global economic growth.

US stocks were also set for a selloff, based on falls in stock futures.

“Trade war 2.0 begins,” UBS strategists wrote in a note Monday.

Japan’s Nikkei stock index closed 2.7% lower and South Korea’s KOSPI was 2.5% down at market close. Hong Kong’s Hang Seng was broadly flat.

The Shanghai index was closed for the Lunar New Year holiday. China’s markets will resume trading Wednesday.

On Sunday evening, Trump also threatened to enact additional tariffs on the European Union, accusing the EU of being “really out of line.”

Europe’s benchmark Stoxx Europe 600 index was 1.4% lower on Monday morning. Germany’s DAX and France’s CAC both fell 1.9%, while London’s FTSE 100 was trading 1.3% lower on the day.

“Tariffs and counter-tariffs will be inflationary and lead to weaker growth prospects, both of which are negative for equities,” said Mohit Kumar, economist at Jefferies.

The US dollar soared to a record high against the Chinese yuan.

“For the moment it looks like the dollar is the only winner,” said Chris Beauchamp, chief market analyst at IG, an online trading provider.

Trump announced over the weekend a 25% duty on all imports from Mexico and most goods from Canada, and an additional 10% tariff on Chinese goods imported into the US.

The tariffs – which Trump says are needed to combat the flow of migrants and fentanyl into the US – are expected to come into effect Tuesday.

Canada and Mexico have announced retaliatory tariffs, and China has said it will challenge the move at the World Trade Organization.

Source: edition.cnn.com

You may also like

World Business // UK” is a prestigious aggregator of global news, covering crucial events in business, economics, finance, and new technologies. Our site offers readers carefully curated content from leading international media outlets, along with exclusive articles, analytical reviews, and expert opinions. The categories on “World Business // UK” include Business, Culture, Education, Environment, Sport, and more, ensuring comprehensive coverage of relevant topics.

A team of professional journalists from different countries works tirelessly every day to bring you the latest and most significant news. We strive to be a reliable source of information for those who want to stay informed about the latest trends and events shaping the global business landscape. “World Business // UK” is your guide in the world of business and economics.

Editors' Picks

Latest Posts

© 2024. World Business UK. All Right Reserved