Live fierce night shot on Kyiv, and Poland raised combat planes! Trump’s customs shake the stock market

Last week, stock prices recorded the biggest weekly fall from the Coronacrize 2020 on the world’s stock markets, as Washington announced drastic import duty and reciprocated with counter -arts.

Last week, Dow Jones fell 7.9 percent on Wall Street, to 38,314 points, while S&P 500 sank 9.1 percent to 5,074 points, and Nasdaq index 10 percent, at 15,587 points.

At the beginning of the week, the market seemed to be recovering from the fall of the previous week because investors ‘playing’ on the fact that Washington would be indulgent with the long -announced customs duties.

But on Wednesday, a ‘cold shower’ followed-US President Donald Trump announced Customs of 10 percent on all imports to the United States, as well as additional reciprocal customs duties with many countries with a trade deficit.

No one expected such drastic customs duties, so on Thursday, all the world’s largest Stock Exchange, through Europe, to the United States, fell sharply.

China returns the blow

The more optimistic investors hoped to calm the market, but on Friday the pressure on the stock market was further enhanced after China announced countermeasures-customs duties of 34 percent of all imports from the US, exactly how much Trump determined customs on imports of Chinese goods.

So Beijing follows Washington’s moves. Trump has already introduced customs duties of 20 percent to the imports of Chinese goods before, and Beijing quickly returned the same measure.

This escalation of the customs war between the two largest economies in the world could, affect investors, cause disorders in the procurement chains and international trade, inflation growth and slowing the growth of the global economy, and even the recession.

Moreover, a number of other countries, including the European Union, also announced the countermeasures on Trump’s customs.

Because of this, JP Morgan Bank Analysts estimate that there is 60 percent chance that by the end of the year the world economy will immerse yourself in recession.

The biggest fall of Wall Street of Coronacrycase

Because of all this, in Wall Street, Dow Jones sank 9.3 percent in the last two days last week, S&P 500 10.5, and the Nasdaq index of 11.4 percent.

It is the biggest two -day decline in these indexes since 2020, when the markets have been panicked due to the Koronavirus pandemic.

In those two days only on Wall Street, more than $ 5,000 billion of the market value of the company from the S&P 500 index were deleted.

Even the President of the US Central Bank of Jerome Powell, although Trump called on the Fed to reduce interest rates, which would support markets.

Powell neglected Trump’s calls and said on Friday that the Central Bank with his moves would wait until he was a clearer influence of Trump’s moves on the economy.

Powell said that the announced customs were much greater than expected, so such will be economic influences, including higher inflation and slowdown in the growth of the economy.

« How strong these influences will be and how long it will last, it is uncertain, » Powell said, pointing out that the central bank is well positioned that he can wait for a clearer picture to adjust her policies.

NASDAQ in the ‘bear’ area

After last week, the Dow Jones and the S&P 500 index dived deep into the correction area, more than 10 percent below their record level, reached in February.

The Nasdaq Index sank, however, in the ‘bear’ area, more than 20 percent below its record level.

And while all the most important Indexes on Wall Street fell, the VIX ‘Fear’ Index jumped to the highest level since 2020 and coronacrize. This means that investors enhanced their portfolio from a possible further drop in shares.

The « Bull Market is dead, and was destroyed by ideologues and self -being. The market may be close to its short -term bottom, but we are concerned with the influence of the global trade war on long -term economic growth, » says Emily Bowersock Hill, director at Bowersock Capital Partners.

European Stoxx 600 Index sank more than 8 percent

And on all other world’s largest stock exchanges, the shares of the share fell sharply last week. Among other things, the Stoxx 600 index of the most important European shares sank 8.3 percent.

In doing so, the London FTSE index slid 7 percent to 8,054 points, while the Frankfurt Dax sank 8 percent, to 20,641 points and Paris Cac 8.1 percent, at 7,274 points.