Due to fear of tariff war, outcry in the global market, Trump said – this is a medicine, it will be affected!
New Delhi:
Trump Tariff has caused earthquake in the global market. Today i.e. Monday, April 8, the Asian stock market opened with a huge decline. At the same time, there was a tremendous decline in big markets like Japan, Hong Kong, Australia. The biggest reason for this is the tariff policy of US President Donald Trump. In response to the huge import tax imposed by Trump, China also imposed strict tariffs on America. Fearing this trade war, investors from all over the world got nervous and started selling shares fiercely.
Large decline in Japan and Hong Kong
Japan’s Nikkei 225 index saw a decline of more than 7% on Monday, while the TOPIX index fell to about 9.6%, the lowest level since August. Hong Kong’s Hang SENG index fell 9.28% and came close to 21 thousand. After this decline, Future Trading had to be stopped in Japan, that is, circuit breakers had to be installed. Such a decline gives a clear indication of fear and panic in the market.
Damage in China, Taiwan and Australia
China’s Shanghai Composite Index fell 4.21%. Taiwan’s stock market fell to 9.8%. Australia’s major index has broken up to 6%. All this is happening because investors feel that trade war will affect global growth and there may be a big decline in companies’ profits.
Pressure also in American market
Not only the Asian market, America’s stock futures also saw a big decline. NASDAQ and S&P 500 futures declined by 4-5%. This simply means that today American markets can fall more as soon as they open. With this, the dollar has weakened and the yield of the treasury bond has fallen, which shows that investors are now running towards safe investment.
Loss of 6 trillion dollars
After Trump’s tariff action, the value of trillion dollars of American companies has been cleared. After Trump’s tariff policy, in the last few days, a value of about 6 trillion dollars has been cleared from the stock markets around the world.
Trump’s statement on the decline in stock market
On Sunday, Trump denied that he was deliberately bringing a decline in the stock market. He said that he did not know the market reaction and he would not do any deal until the trade deficit with other countries is resolved.
Talking to reporters in Air Force One, Trump said that he has talked to many leaders of the world on this issue and said that he is desperate to deal all.
Oil and gold prices fall
This decline has also affected the commodity market. The price of American crude oil went below $ 60, the lowest after 2021. Brent crude is also trading at around $ 63. The price of the gold has also fallen by 0.7% and it has come to $ 3,013 an ounce.
Expectation of fed rate cut increased
It is now expected that the American Central Bank Federal Reserve may soon cut interest rates. Fed Fund Futures are showing that the rate of rate cut has reached 63% in May itself.