Trump’s new duties have lowered stock market shares
The duties also affect the import of auto parts, which will cause major losses to the Japanese and South Korean stock exchanges in trade in Asia.
| Following the announcement of the duties, US auto manufacturers lost their shares. With General Motors, the decline was 6%, while Ford shares fell by nearly 5% due to concerns about their supply chains. |
European shares have reduced their value in early trade, with the decline in the stock of top manufacturer Volkswagen being the highest of 5%, along with BMW and Mercedes-Benz. The Stoxx 600 Index struck a two -week bottom with a drop of 0.5%.
Trump has announced duties on all cars that are not manufactured in the US
Index FTSE 100 dropped by 0.6% .Fse and the German DAX They also decreased by 0.6%, while investors were trying to predict the impact on the auto sector in Germany.
| The yield of bonds in the euro area has dropped, with Germans reaching their lowest yield in two years. |
The duties are the latest escalation in the global trade war that investors see as a threat to growth in the United States and an increase in inflation.
For China, Trump said it was allowed to decrease duties to make a deal to sell Tictor, which retains Chinese shares at higher levels of Asian exchanges.
The Auto Association in Germany has called for emergency negotiations between the EU and the US for duties
- Japan Prime Minister Shigeru Ishiba has announced that all options are on the table in response to US customs duties.
- Canada said it could impose retriered duties while the European Union was regretted, but seeks solutions through negotiations.
Trump has repeatedly announced plans for reciprocal duties on all sides on April 2, which he called « Liberation Day ». On Thursday, Trump said the duties would be « condescending ».
| « The uncertainty about duties remains big, which is really difficult for both business and investors to plan the future and, of course, it really makes it difficult for investors to make a risk assessment, » said Bailey Wakefield, portfolio manager with multiple assets at Aviva Investors. |
Gold prices increased by 0.7% per day, reaching $ 3040 an ounce.
Goldman Sachs has raised its forecast for the price of gold on Wednesday, pointing to greater flows to ETF funds and increased demand from central banks.
