At the global stock exchanges, stock prices have fallen last week because, after Israel attacked Iran, investors scare the expansion of the Middle East.
Last week, Dow Jones fell 1.3 percent last week, at 42,197 points, while S & P 500 slipped 0.4 percent, to 5,976 points, and the NASDAQ index 0.6 percent, at 19,406 points.
At the beginning of the week, the market ruled a good mood because on Tuesday, after a two-day meeting in London, American and Chinese representatives reached an agreement on trade.
“Our agreement with China is over, it is still necessary to finally approval of the President Xi and me,” US president Donald Trump said.
He also pointed out that China will abolish restrictions on the trafficking of rare metals. “Our customs will be 55 percent, and the Chinese 10 percent,” Trump ordered.
However, this did not cause the euphoria on the market because, analysts say, many details about how the agreement will be carried out so far.
In addition, high customs are expected to encourage inflation growth in the coming months. Therefore, almost no one expects the Fed to reduce interest rates in June, despite the constant calls of Trump and his associates to do so.
On Friday, however, the markets shook the attack on Iran because, as the Islaemic Republic is ordered to prevent the Islamic Republic in the development of nuclear weapons.
Iran replied with the attacks of drones and missiles on Israel.
The escalation of hostility in the Middle East has entered additional uncertainty on financial markets at the time of reinforced pressure on the economy due to aggressive and hirovite trump customs policy.
“Geopolitical tensions entered additional uncertainty on the fragile mood,” says Charu Chanan, Strategist in Saxo Bank, Hina transmits.
And on most European stock exchanges, the prices of the stock passed last week. However, the London FTSE index strengthened 0.7 percent, to 8,837 points, but Frankfurt Dax slipped 3.2 percent, to 23,516 points, and the Paris CAC 1.5 percent, to 7,684 points.
