Global actions slip while Trump prices have hit the markets

The stock markets in London, Paris and Berlin fell while trade began on Thursday after the radical announcements of US President Donald Trump on prices.

The FTSE 100 sharing index of the United Kingdom has dropped by 1% while the CAC 40 of France dropped by 1.7%.

Earlier, Asian markets had slipped, while the price of gold, which is considered a safer asset during periods of turbulence, has climbed to a record level.

Merchants are concerned about the global economic impact of Trump prices, which fears, could stir up inflation and drop it out.

The markets across Asia had dropped sharply after Trump’s announcement, the Nikkei in Japan closing almost 3% and the Hang Seng of Hong Kong is less than 1.5%.

The price of gold reached a record of $ 3,167.57 per time at one point on Thursday, before falling back.

The term markets also suggest that American shares will be down when trading starts later. The S&P 500 is indicated that it drops by 3% and the Dow Jones by 2.4%.

The American government’s decision to impose a combination of a 10% reference levy and higher tasks on a number of other reversed trade partners from the decades of liberalization who have shaped the global commercial order.

“This is the worst case,” said Jay Hatfield, Managing Director at Infrastructure Capital Advisors.

“Enough to potentially send the United States to a recession,” he added, echoing the feeling of the nervous market.

George Saravelos, FX chief with Deutsche Bank Research, said the new American trade rates were a “highly mechanical” reaction to trade deficits, rather than “sophisticated evaluation” that the White House had promised.

Mr. Saravelos warned this decision “the risks reducing the credibility of the administration policy (Trump)”.

“The market can question the extent to what a sufficiently structured planning process for the main economic decisions takes place. After all, this is the biggest trade change in the United States in a century,” he said.

The actions of the Adidas sportswear has dropped by more than 10%, while the shares of Rival Puma fell by more than 9% as key countries where their goods were struck by large levies.

New taxes include a 54% rate on American imports from China and 46% on Vietnam goods.

Among the luxury products companies, the Pandora jewelry manufacturer fell by more than 12% and LVMH (Louis Vuitton Moet Hennessy) dropped by more than 3% after the prices were imposed on the European Union and Switzerland.

There are concerns that prices could affect American consumption spending, which is an integral part of the world economy – between 10% and 15%, according to certain estimates of certain economists.