The duty Donald Trump shook markets on Monday, with a dollar jump and the fall of global stock markets while investors rush to assess how the U.S. will affect the United States and its greatest trade partners.
The US dollar increased more than 1.3 percent compared to the Currency basket, sending a Canadian dollar to the lowest level since 2003. Mexican currency fell by almost 3 percent, while the euro was 1.3 percent.
Asian stocks fell as the futures of American shares also fell sharply, with the contracts that accompany the reference value of the S & P 500 lost 2 percent, and those who follow Nasdaq 100 slid 2.6 percent.
European futures agreements also fell, with Euro Stoxx 50 fell by 2.4 percent.
These moves were followed by Trump on Saturday of 25 percent on imports from Mexico and Canada, with a lower impressive of 10 percent for Canadian energy and new customs from China. He also threatened the customs against the EU.
Trump in publication on Truth Social, his social network, admitted that “might” be “something pain” from his customs. “But … it will all be worth the price that must be paid,” he wrote on Sunday.
Global investment banks warned that customs will hit the American economy together with the rest of the world. UBS and Morgan Stanley and Morgan Stanley predict that, if the Customs are held, this year could halve the growth of real GDP USA – reducing it for more than 1 percentage.
The yield on American two-year treasury bonds increased by 0.04 percentage points to 4.23 percent, while the return on 10-year bonds dropped by 0.03 percentage points to 4.5 percent, seebiz.
“There was some optimism on the market that they were [prijetnje carinama] Only for negotiations, but the market may have underestimated the determination of the Trump Administration, “said Jason Lui, the leader of the Asian-Pacific Strategy of Shares and Derivates in BNP Paribas.
Economists have warned that customs are likely to accelerate the inflation in the United States. “The clearest implication is a stronger dollar,” said Eric Winograd, the main economist in AllianceBernstein. “Long dollar position is the purest, the clearest expression of the trade war that is now moving.”
“The currencies that will suffer the most are the ones that the customs are imposed,” Winograd added, noting that “there are good arguments that the joint stock market will suffer a little.”
Japanese export index Nikkei 225 fell 2.8 percent, while Topix fell 2.4 percent. The South Korean reference value of the Kospa fell by 3.1 percent, and Won fell 1.1 percent compared to the dollar to 1469.7 WON.
The Hang Seng index in Hong Kong fell by 0.7 percent, led by falling Chinese companies that quoted in the area. The Exchange in Continental China was closed until Wednesday.
Chinese offshore Renminbi, traded freely, slipped as much as 0.7 percent to 7.37 RMB for a dollar on Monday morning before reducing their losses.
Oil prices have also risen in early Asian trade, with the international reference raw Oil Brent rose by 0.6 percent to $ 76.13 per barrel.
Other goods treated as substitutions for Chinese and global economic growth are fallen. LME copper fell 0.7 percent to 9,064 dollars per ton, while nickel and aluminum fell for more than 1 percent.
George Saravelos from Deutsche Bank said the announcements of the tariff “at the youngest end of the landline spectrum we could imagine”, and that markets must “structurally and significantly change the commercial war risk.
Mexican peso was sharply falling in the last week as traders have carefully studied the announcements of the new Trump administration, seeking indications of customs.
