The term contracts on American actions fell sharply on Sunday evening when the Trump administration has shown no sign to retreat from a large plan to impose prices.
The term contracts linked to the industrial average of Dow Jones recently fell by 2.2%, indicating a drop of more than 800 points to the Open on Monday, while the term contracts linked to the S&P 500 and the NASDAQ fell by 2.7%and 3.4%, respectively. Dow Futures had decreased by more than 1,600 points at one point on Sunday evening,
The main indexes that have come out of their worst week since the first days of the pandemic covid in March 2020, after the actions plunged Thursday and Friday after the announcement by President Trump of radical prices on American trade partners. The S&P 500 benchmark has decreased by 10.5% in the last two days of the week, while the DOW has lost nearly 4,000 points.
Officials of the White House did not give any indication during the weekend that the president would plan to reduce the prices. The so -called reciprocal rates that Trump announced on Wednesday – which include new 20% levies on imports from the European Union, 26% on Japanese imports and 34% on imports from China – should take effect on Wednesday.
The Trump administration, which also indicated that more sectoral prices are coming, says that the measures are necessary to restore competitive balance and bring back manufacturing and jobs in the United States, however, the speed and depth of the policies announced in recent weeks – and the prospect that countries could slip into a recession of China – increased concerns among economists and investors that the economy could slip into a recession.
Speaking on Friday, the president of the federal reserve, Jerome Powell, said that the prices announced last week were higher than expected and increased the risks of inflation and the slowdown in economic growth. Powell said the Fed was expecting greater clarity on the impact of Trump policies before considering interest rates adjustments.
Asian actions have also dropped to launch their week in the middle of fears of the consequences of a trade war, with the Hang Kong Hang Seng index down 9%, while the Nikkei 225 in Japan dropped by 6%and the Kospi index of South Korea and the S&P Australia 200 fell each of more than 4%.
Bitcoin also fell on Sunday, following the downward move of shares while investors abandon risky assets. The digital currency was $ 78,700 recently, down compared to a previous summit Sunday of almost $ 84,000 and negotiating at its lowest levels since early November.
Brut prices have also withdrawn in the midst of increasing concerns concerning the slowdown in global demand. West Texas Intermediate Futures, the American crude oil benchmark, dropped by 2.6% to $ 60.40 per barrel, after falling up to $ 59.38, their lowest level since last April.
Update: This article has been updated with the latest information on US stock contracts, as well as early negotiation activity on Asian markets.
