Business Reporter, BBC News
European markets have dropped again after China hit the American import taxes with its own reprisals.
The FTSE 100 of the United Kingdom and the Dax of Germany fell by approximately 4%, some companies having seen a two-digit drop in their equity prices.
The decreases add to large falls seen on Thursday while the markets continued to react to the uncertainty triggered by the American prices.
Traders fear that prices will increase prices and assess growth in the United States and abroad.
The new radical prices announced by President Donald Trump sparked a fall on the world’s stock markets on Thursday.
US markets have had their worst day since the impact of the pandemic cochem in 2020.
Trump told journalists that he thought things were going “very well”, adding: “The markets will explode”.
But Friday, the markets continued to slip, then spanned after China imposed additional 34% tariffs on all American products from April 10.
In London, the actions of Barclays Bank and Natwest fell 8%, the company Mining Glencore fell by more than 9%and the manufacturer of aerodynamic engine Rolls-Royce dropped by 9%.
Russ Mold, director of investments at AJ Bell, said that the “incessant sale” had continued despite the investors “hoping that the pain would disappear”.
“There are so many mobile pieces that making your head in the situation (as an investor) is not easy,” he said.
“With countless sectors that should be affected by prices, it is difficult to know where to start to understand the situation.”
Jane Sydenham, investment director at Rathbones, said that banking actions, companies with supply chains that were exposed to prices and that technological actions had all dropped.
Investors had bought Safe Haven assets, including gold and state bonds, she said.
China had been “under high pressure” to meet the prices of 54% on most goods, she said, and its economy was large enough to be able to take such measures.
But countries with smaller savings had to be more cautious, she added.
The dollar index, which measures the value of the American currency against six peers, flowed 1.9% Thursday, the strongest drop since November 2022, but Friday, it stabilized, increasing by 0.1%.
Oil prices have dropped sharply while traders feared that prices could slow down economic growth and worsen commercial disputes.
The price of a barrel of crude Brent dropped by $ 65 per barrel by $ 65.
The director general of the International Monetary Fund (IMF), Kristalina Georgieva, said that new prices “clearly represent a significant risk for global prospects at a time of slow growth”.
She said that the IMF was still examining the “macroeconomic implications” of the measures and underlined the need to avoid actions that could do more damage to the global economy.
Friday’s falls occurred after the pricing announcement triggered the most steep drop in American shares since 2020 Thursday.
The American sharing index S&P 500 decreased by 4.8% while the NASDAQ – which is dominated by technological companies – has flowed by almost 6%.
Nike, Apple and Target were among the big consumer names, the worst blow, with all their actions plunge more than 9%.
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