Expert about Trump’s customs play that pushes the stock exchanges
A quiet Fridaybörs got a brutal bang in the afternoon. US President Donald Trump was out on his social media channel and threatened the EU with 50 percent Customs. Result: New cases in the stock markets.
The Stockholm Stock Exchange was at most down 2.2 percent but scratched slightly and had backed 0.9 percent at closing. It was worse on several heavy European stock exchanges that the German and French that both showed minus 1.6 percent at closing.
It was also minus during the first hours at the US stock exchanges.
Experts DN spoken to Tone down the drama slightly.
« This is a play and he has backed before, » says Shoka Åhrman, economist at SPP.
She points out that after the initial case, the courses ticked up something.
– It confirms that there is some hope that he is backing again, and new negotiations will take off, she says.
At the same time, she notes that Trump’s customs play has power and affects the markets.
– It is important that Europe acts to get some form of agreement. Nothing is clear yet and this creates a huge concern. Especially for Swedish companies, says Shoka Åhrman.
She also points out that the stock market has shown a strong ability to recover and mentions concerns in connection with the pandemic. The recovery after the sharp declines associated with Trump’s major customs play in early April is another example.
– Although we get this type of quick reactions, we see that the market is recovering, says Shoka Åhrman.
Philip Scholtzé, economist At Avanza, Friday’s play is not the final word.
« Trump sounds a lot and then it probably lands better than how it sounded from the beginning, » he says.
– As an investor, you have to bring it with you what you learned in April. That on the stock exchange you should have money that you can last for a very long time. It has not changed, he continues.
The message from Trump Come late on Friday afternoon. This means that there will be two days with closed markets that will handle the new uncertainty.
Philip Scholtzé sees both the pros and cons of that situation.
– Emotionally, it would have been more fun to go to the Friday night with a quiet stock exchange. But instead of getting a couple of messy stock days more, if this had come another day, we will be able to get new information over the weekend, he says.
– Maybe something comes from the EU so we get more meat on our legs before it will open again on Monday, says Philip Scholtzé.
Read more:
Carl Johan von Seth: Trump has tired of the EU not standing on customs circus
