The US exchanges show strong losses on Thursday. Donald Trump’s customs plans were probably not priced from the market.
The Dow Jones began the trading day after the “Liberation Day”, which is called by US President Donald Trump, 2.93 percent lower at 40,986.52 points and then remains in the deep red area.
The Nasdaq Composite is also far behind after it sagged 4.6 percent to 16,790.53 points at the start. At the start of the trade, the market width S&P 500 showed a minus of 3.14 percent to 5,492.74 units and also maintains the weak tendency.
Customs announcements “exceed the worst fears
In the future, the United States will occupy imports from other countries with additional tariffs of 10 percent. However, these tariffs are even higher for some trading partners. 20 percent are on imports from the EU, 24 and 34 percent of Japanese goods.
“The planned measures exceed the worst fears,” commented chief economist Thomas Gitzel from Liechtensteiner VP Bank, commenting on Donald Trump. Since both the European Union and China have already announced countermeasures, the global trade war is now “in full swing”.
Fear of attractive inflation is about
Market participants fear that the higher tariffs will raise inflation, reduce the profits of the companies and ultimately drive the economy into a recession. An increasing inflation could even force the US Federal Reserve to increase interest rates, it is said.
This scenario particularly affects the technology values that had already booked violent losses in the post -market trade on Wednesday and fall even deeper today.
Redaktion finanzen.net / Dow Jones Newswires / dpa-AfX