On Monday, global stock markets fell on fears that that trade duties imposed by U.S. President Donald Trump will lead to a trade war and slow down the global economy. duties will lead to a trade war and slow down the global economy, Bloomberg writes.
Wall Street indexes, which fell at the beginning of trading, slightly recovered after the news about Trump’s postponement of duties on Mexican goods for one month. Mexican goods for one month. However, the imposition of high tariffs on key trading partners triggered a global investors’ shift into defensive assets and the dollar.
In Europe, the STOXX 600 index fell 0.87%, with auto maker securities losing more than 3% and the technology sector 2%, according to data compiled by Bloomberg. The FTSE 100 was down 1.04%. The euro’s losses during the day reached 0.9%.
Japan’s Nikkei sagged by 2.69%, Australia’s S&P/ASX 200 by1.79% and Hong Kong’s Hang Seng by 0.04%. Trading in China will resume on Wednesday after the holidays.
Mexican President Claudia Sheinbaum responded to the U.S. with counter duties, while Canadian Prime Minister Justin Trudeau warned Americans about the real economic consequences of the tariffs.
