At Wall Street, the stock prices fell sharply, losing a part of the winnings from the previous day, because the custom war between Washington and Beijing does not see the end.
The Dow Jones Index fell 2.50 percent, at 39,593 points, while S & P 500 sank 3.46 percent, to 5,268 points, and the NASDAQ index 4.31 percent, to 16,387 points.
Thus the indices lost part of the winnings from the previous day, when the S & P 500 jumped the historic 9.5 percent, and the nasdaq is more than 12 percent.
Record high price of gold
The US dollar fell sharply on Friday as the concerns about the influence of the Great American-Chinese trade war grows.
US government bonds continued to sell out seen earlier this week.
Investors are moving to the so-called safe property such as Swiss Frank and gold.
Gold rose above $ 3200 for the first time for ounce (28 grams) while the Swiss franc reached the highest level in the new decade.
Trump customs and their impact
After the large oscillations of the last days, the S & P 500 is still about 7 percent in the minus last week, when the US president Donald Trump announced additional, reciprocal customs in imports in the United States.
Once Trump had delayed the application of these customs in 90 days, many countries said yesterday that they were willing to negotiate. Among other things, the European Union, who delayed his countermeasures on Trump Customs.
Continuation of the customs war between the US and China
But the Customs war between Washington and Beijing continues because Trump increased the total customs rate to import Chinese goods to 145 percent, 125 percent of reciprocal customs and the previous 20 percent related to the crisis with Fentanil.
China on the package of American goods from yesterday applies a customs from 84 percent, with the previous 20 percent on a certain product group, and says that they will not give in.
Market instability and investor concern
“Investors are difficult to decide to buy shares with such instability and uncertainty. They are worried about the customs because it is difficult to influence the economy,” says Paul Nute, an analyst in Murphy & Sylvest.
Therefore, yesterday the investors did not encourage even better than the data on the data on the INFLATION in the US in March was expected.
Inflation and monetary policy
After all, it is estimated that in the following months, the inflation will most likely increase in the leaders of the American Central Bank that they will not rush in interest, but to wait for data that will affect economies and inflation.
Due to all this, yesterday, the Vix index “fear” rose again, which shows that investors increased to ensure their portfolios from the possible further drop in stock prices.
European stock exchanges in positive territory
And on European stock exchanges, shares rose yesterday. The London FTSE index strengthened 3.04 percent, to 7,913 points, while Frankfurt Dax jumped 4.53 percent, to 20,562 points, and the Paris CAC 3.83 percent, on 7,126 points, index.hr.
