The beginning of the new week was not good for the world stock market. The trade dispute between the United States and China is seen to widen. Moreover, crude prices have fallen by 2%., with expectations of higher output from exporters.
The weekly drop has been increasing for the past six weeks. Last week, it was seen as the worst down movement over past three months.
The Asian stocks fell by 1%. Nikkei saw a loss of 0.8%, while STOXX 600 saw a 1% drop in London.
Trump has further tightened laws by claiming that he would hike tariff even further by 20% on EU car import. The European auto industry saw an immediate slump in its market value. It has been falling continuously for seven days, falling by about 1.9%.
If this trade war continues from Trump, it will find a similar response from the EU and China, which will further impact US equities negatively, say ING strategists. This, in turn, will impact ratings against Trump, they feel.
China has taken steps to protect its economy. It has cut its cash reserves by banks by 50 basis points. Yet the slump continues with the CS1300 Index falling 0.8%. The auto sector has also seen a fall in its global index by 0.7%. Last week alone, it saw a slump of 4.7%.
Crude futures in the US was down by 0.3$ as it traded at $68.79 a barrel. Brent was another international benchmark that faced a downward slide of 1.5%. Both crude and Brent saw a positive uptrend on Friday but gave up its gains on Monday. The dollar has fallen 0.4% to its 109.60 yen. This is its two-week low and is being observed with concern.
However, lira gained 1.6% with a stable government formed in Turkey by President Recep Tayyip Erdogan, in the recently held polls.
Morgan has been in the position of the business analyst for almost a decade and with such expertise, he is one of the best expert hands with us. His profound understanding of the trade, commerce, and business trends makes him a reliable contributor to blamfluie.com.