Global stock markets, particularly in Europe and Asia, fell due to concerns over Trump’s trade policy and its effects on the US and Chinese economies. A return to deflation in China has heightened these fears, prompting a potential need for further economic measures. Regional market performance varied, with Tokyo’s market gaining slightly while others declined significantly.
European and Asian stock markets experienced significant declines on Monday, primarily due to investor apprehension regarding the potential impacts of President Trump’s trade policies on the economies of China and the United States, the largest economies globally. An indication of weak consumer prices in China, revealing a return to deflation, further heightened these concerns about economic growth.
Key indices in London, Paris, and Frankfurt all faced losses, reflecting similar downward trends seen in Hong Kong and Shanghai, although Tokyo managed a slight increase. Susannah Streeter, head of money and markets at Hargreaves Lansdown, remarked on the pervasive unease stemming from Trump’s tariffs, stating that it hangs over the financial markets.
Concerns of a looming recession in the United States became pronounced following Trump’s remarks during a Fox News interview, where he refrained from predicting economic downturns. He suggested a transitional period is necessary as the U.S. works towards revitalizing its economy, emphasized by bringing wealth back home.
In China, attention was focused on the conclusion of the leaders’ annual gathering, where they decided on a growth target of approximately five percent for 2025, made domestic demand a priority, and announced an increase in fiscal spending. Recent statistics showing a 0.7 percent decline in consumer prices for February underscored the necessity for further actions to address the sluggish economy.
SPI Asset Management’s Stephen Innes noted that deflationary pressures in China remain persistent, with the property sector struggling and weak domestic demand. Despite advancements in the technology sector, the broader economic benefit is not adequately reaching consumers.
As of 1100 GMT, the key figures showed declines in several major indices. The FTSE 100 in London dropped 0.5 percent, while the DAX in Frankfurt decreased 0.9 percent. In contrast, Tokyo’s Nikkei 225 experienced a modest increase of 0.4 percent, demonstrating regional variations in market performance. Currency and oil prices saw minimal fluctuations, with the euro showing a slight increase against the dollar but the pound declining marginally.
In summary, the prevailing decline in European and Asian stock markets reflects investor anxiety related to President Trump’s trade policies and their potential economic repercussions. Chinese economic indicators also point towards deflationary concerns, necessitating government intervention. These factors contribute to a complex economic landscape characterized by varying performance across different markets and sectors.
Original Source: www.kpvi.com
