After unprecedented oscillations, the stock market indices last week increased strongly, despite the escalation of the customs war between the United States and China, while they fell on European stock exchanges.
At Wall Street, Dow Jones rose 4.95 percent last week, at 40,212 points, while the S & P 500 jumped 5.7 percent, to 5,363 points, and the NASDAQ index 7.3 percent, to 16,724 points.
In the beginning of the week, the indices were still under pressure from drastic customs, which the president of the US Donald Trump announced in early April, and for the seven days before the share of the shares of Coronacrize 2020. Years.
But to the reversal occurred on Wednesday, when Trump unexpectedly delayed additional, reciprocal customs for all countries, except China.
On that day, the euphoria on Wall Street, the S & P 500 jumped 9.5 percent, which was his third largest daily jump from World War II. The NASDAQ index recorded, on the other hand, the second largest jump in its history, more than 12 percent.
Thanks to that, the indices have finished the week in the plus. But they are still at loss compared to the beginning of April, when Trump announced customs, SEEbiz reports.
Once Trump had delayed the application of reciprocal customs, many countries said they were willing to negotiate. Among other things, the European Union, who delayed his countermeasures on Trump Customs.
But the customs war between Washington and Beijing continues because Trump increased the overall customs rate on the import of Chinese goods to 145 percent.
China, on the other hand, has increased customs duties to a total of 125 percent.
This escalation of the customs war between the two largest economies could cause stakeholders and international trade, inflation growth and slowdown in the growth of the global economy, and even the recession.
“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.
And while the stock of the stock prices went up last week, on most other world stock exchanges were fell.
Thus on the largest European stock exchanges. The London FTSE index weakened 1.1 percent, at 7,964 points, while Frankfurt Dax slipped 1.3 percent, at 20,374 points, and the Paris CAC 2.3 percent, to 7,104 points.
