New York / London: The world’s stock markets have dropped, the US dollar has weakened and the oil prices have plunged while the reciprocal prices of President Donald Trump fueled the fears of a global economic slowdown, sending investors rushing to safe assets such as bonds and the yen.
A new reference rate of 10% on imported goods, as well as attractive reciprocal prices on dozens of countries which, according to Trump, had unfair trade barriers, traders who left the gravity.
Investors fear that a full-fledged commercial dispute could trigger a net global economic slowdown and increase inflation, the latest series of American commercial prices reaching a global economy barely recovered from the overvoltage of post-paymic inflation and dealing with geopolitical conflicts.
The euro joined 1.53% compared to the dollar. Against the Japanese yen, the dollar weakened 2.07% at 146.15.
The NASDAQ fell by more than 5%, with actions related to technology among the biggest streaks of the day. Apple dropped 9.2%, affected by prices on China – the base for a large part of its manufacture. Amazon.com fell 7.9%, Microsoft was down 1.5%and Nvidia fell by 6.9%.
The losses come after billions of dollars have already been destroyed “magnificent seven” technology this year when the concerns have rose.
The CBOe volatility index, known as Wall Street’s fear, hit a three -week summit at 26.91 points. The energy sector of the S&P 500 has dropped by more than 6% as oil prices have flowed.
“This is only another chapter of the market in a background process,” said Bruce Zaro, general manager of Granite Wealth Management in Plymouth, Massachusetts.
Investors adjust their perspectives in part on the basis of the potential impact of prices on business profits, he said, adding: “What we have already seen and will continue to see are drastic reductions in profits. This will be played and light up for a while.”
The industrial average of Dow Jones dropped by 1,317.59 points, or 3.12%, to 40,909.33, the S&P 500 fell from 227.17 points, or 4.01%, to 5,443.80, and the NASDAQ composite dropped from 912.44 points, or 5.18%, to 16.68.61.
The MSCI actions gauge around the world fell 23.64 points, or 2.83%, to 812.47.
Reciprocal sample
In Europe, the EU block of 27 countries is now faced with a reciprocal tax of 20%. The STOXX 600 pan -European index fell 2.57%.
Trump’s samples have had a particularly difficult Asia on Asia. China was affected by a reciprocal rate of 34%, Japan 24%, South Korea 25%and Vietnam 46%.
Vietnamese shares fell 6.7% in response. The Nikkei 225 index fell 2.8%.
“This is how you sabotage the global economic engine while claiming to defeat it,” said Nigel Green, CEO of Global Financial Advisory Devere Group.
The Prime Minister of Vietnam, Pham Minh Chinese, is committed to maintaining the country’s economic growth objective at least 8% for this year, despite the United States which imposes its considerable price for exports from the Southeast Asian Nation.
The race for ultra-security state bonds which provide guaranteed income which has lowered the yields of the US Treasury. The yield on the Treasury to 10 years of reference has dropped from 15.3 base points to 4.042% after dropping at 4.004%, its lowest since October 16. The yield on the note was on the right track for its biggest decrease daily since August 2.
The state bond yields of the euro zone have dropped, with the yield in 10 years of Germany by 10Yt = RR, the reference of the euro zone, down 7.5 basic points at 2.65%, after having reached 2.625%, its lowest since March 4.
If prices trigger recessions, central banks around the world are likely to reduce interest rates, which benefit obligations.
The credit rating agency, Fitch, warned that they were a “game changer” for the American and global economy, while the Deutsche Bank qualified them as a time “once in a life” which could strike between 1% and 1.5% reduction on the growth of the United States this year.
“Many countries will probably be found in a recession,” said US Fitch Economic Research, Oli Sonola. “You can throw most of the forecasts through the door if this price rate remains on for a long time.”
Shortly after, Fitch downgraded the China credit rating, citing steep prices of the United States as a reason.
Oil prices dropped, with an American gross CLC1 6.5% at $ 67.05 per barrel and Brent LCOC1 at $ 70.27 per barrel, down 6.24% over the day.