In the world’s currency markets, the American dollar weakened slightly on Monday to the currency basket, while the oil markets were additionally sharply fallen, after lasting more than 10 percent last week.
Due to the customs war, which initiated the US President Donald Trump last week by the announcement of drastic customs in the United States, world stock exchanges are not calming.
On Monday around 7:00 MSI, the Asian Stock Exchange Index was in the minus 7.5 percent. Stock prices on stock exchanges, South Korea, Shanghai, Japan and Hong Kong sunk between 4 and 10.7 percent. The American DOW Jones, S & P 500 and Nasdaq – between 2.5 and 4 percent – announces further sharp decline in shares of shares on Wall Street today.
And on European stock exchanges, a further decline is expected, after the last week of the Stoxx 600 index of the most important European shares sank more than 8 percent. The term FTSE index of the London stock exchange is currently in the minus 2.6, and the Frankfurt Dax index is 4 percent.
It is a consequence of the escalation of the customs war, considering that the American Customs China retaliated with the same measure. This escalation of the customs war between the two largest economies could cause disorders in the procurement chains and international trade, inflation growth and slowing the growth of the global economy, and even the recession.
Therefore, investors withdraw from risky investments, such as shares, and seek refuge in investments that are considered safer in preceptive times, such as government bonds and individual currencies.
Today, investors continued to sell and a dollar, and buy traditional secure currencies in uncertain times – Jen and Swiss franc. The usual and US dollar is considered a safe haven, but it seems that this status is weakening how to reinforce uncertainties around customs and concerns about their impact on the US economic growth.
This morning, the dollar index, which shows the value of American compared to the other six most important world currencies, ranges around 102.80 points, while on Friday evening it was 102.89 points. This morning is a dollar exchange rate according to Japanese currency fell by further 0.7 percent, to 145.90 yen.
The American currency weakened in relation to European, by 0.25 percent, so the price of the euro reached $ 1,0985. The dollar support provided the President of the US Central Bank Jerome Powell, saying that the Fed would not rush a reduction in interest rates, but will wait until the impact of Trump’s moves on the economy.
Powell said that the announced customs were significantly larger than expected, so such be economic influences, including higher inflation and slowdown in the growth of the economy.
Oil prices, on the other hand, further fell further this morning, after the last week sunk more than 10 percent. The price of the barrel in the London market fell 2.49 percent this morning, to $ 63.95, while in the American market, BAREL cheaper 2.56 percent, to $ 60.40. These are the lowest levels of price from April 2021. years.
The disorders in the financial and commodity markets have caused a drop in the price of gold. This morning, the ounce cheaper 0.3 percent, to $ 3,027, which is the lowest price of ounce in the last three weeks. The price of gold last week moved on record levels, significantly above $ 3,100.
