Worldwide markets tumbled yesterday for fear of a trade war after Donald Trump had imposed huge rates on Mexico, Canada and China.
But the pound gathered against the euro – driven by the hope that although the European Union can be the following in the sights of Mr Trump, Brexit Groot -Britain can be saved.
It followed the American president and said that EU's behavior was a “atrocity” and that while the UK “was out of step … it can be worked out.”
After Mr Trump's comments, referring to trade shortages, the FTSE 100 group of top companies slipped at a certain point by no less than 1.8 percent or 154 points, and wiped £ 38 billion. Stocks in the US, Europe and Asia were also deposited sharply.
The turbulence broke out after Mr Trump had announced the rates of 25 percent of the American neighbors of the American neighbors this weekend during the weekend, as well as an accusation of 10 percent on Chinese goods.
The markets recovered partly after reports that the president had agreed to pause rates on Mexico.
Economists said that the rates would not only affect the directly involved countries, but also threatened a broader trade war that would delay the world economy and impose higher prices on American consumers – and even Mr. Trump admitted that the move could cause pain.
George Saravelos from Deutsche Bank said that if the rates go, this would be the biggest shock in global trade policy since the 1970s, even greater than the trade war against China, which was launched by Mr. Trump during his first term.
Worldwide markets came from the fear of a trade war after Donald Trump (photo) had imposed huge rates on Mexico, Canada and China
Turbulence broke out after Mr Trump had announced the rates of 25 percent of the import of the American Buren Mexico and Canada during the weekend
Speaking of Trump's rates, Keir Starmer said: 'They are early days and I think what is really important, open and strong trade relationships is'
“These rates are about five times as large as the cumulative sum of trading actions under the first Trump administration,” said Saravelos.
Markets recovered partly after a clear agreement to pause a month after a clear agreement against Mexico after positive conversations with the President Claudia Sheinbaum of the country, which made them agree to send 10,000 troops to help the US border the police to help.
Trump has hammered the two countries in the midst of anger that they are leaving drugs and illegal migrants to the US.
The FTSE 100 ditch 1 percent or 90 points down at 8584.
But it was still a gloomy start until February after the Blue chip index had enjoyed the strongest month in January for more than two years and ended at a record high last Friday.
In the meantime, German Dax fell by 1.4 percent, while the CAC 40 of France lost 1.2 percent and the Japanese Nikkei fell by 2.7 percent.
But the reaction to Wall Street showed that American stocks – and millions of American savers – were also confronted with a hit.
The S&P 500 opened 1.2 percent lower and the technically heavy Nasdaq index lost an initial 2.1 percent. Both claws back some losses later.
There were also sharp waterfalls for cryptocurrencies – an industry of which the most important players include some of Mr Trump's largest backers.
Piles of wood are seen for sale in a home improvement store in Falls Church after the announcement of Mr. Trumps of rates
Economists said the rates would not only affect the directly involved countries, but threatened a broader trade war (depicted: view of avocados and tomatoes for sale in a market in Mexico -city)
Markets recovered partly after a clear agreement to pause rates against Mexico for a month after positive conversations with President Claudia Sheinbaum of the country (photo)
Despite the more positive sounds about the UK, the FTSE 100 fell more than 100 points in early trade on the alarm about the wider impact
The pound is against the US dollar this morning, although it has won against the euro
Bitcoin fell to around $ 92,000 on Sunday evening before he returned to around $ 99,000 yesterday.
Traditional currency markets were also turned upside down by the developments that took off the dollar.
The euro slid almost $ 1.02, which made predictions that it could soon be parity with the American currency.
However, the pound was after a first hit – later flat versus the US dollar.
The fear that Mr. Trump would hit Europe then emerged after he had regretted the trade deficit between the US and the EU. It means that Europe is selling more goods to the US than the US is selling to Europe.
Trump said: 'They don't take our cars, they don't take our farm products. They take almost nothing and we take everything away from them. '
Car manufacturers in Europe are said to have been the worst affected by American rates on Europe – and shares in Volkswagen in Germany, BMW and Porsche all fell strong.
American car companies – with factories in Canada and Mexico and supply chains that cross all three countries – would also be affected, reducing shares in Ford and General Motors.
Car manufacturers in Europe would have been one of the worst affected by American rates for Europe – and shares in the German Volkswagen (photo), BMW and Porsche all fell sharply
The French President Emmanuel Macron (photo) said yesterday at an informal top in Brussels, said that if the EU was attacked, it should “make and therefore respond”
The German Chancellor Olaf Scholz said that the block could respond if necessary with his own rates against the US, but he emphasized that it was better for the two to find agreement on the trade
In the UK yesterday, Diageo of drinks belonged to the pallers – because it is exposed to the rates by his ownership of Tequila brands in Mexico.
If Great Britain is eventually hit with rates, the pharmaceutical and car sectors, according to Paul Dales, Chief UK Economist at Capital Economics, would be the most vulnerable.
EU leaders warned Mr Trump yesterday that they would fight back if the US touch Europe.
Arriving at an informal top in Brussels yesterday, the French President Emmanuel Macron said if the EU was attacked, this should “make and therefore respond.”
And the German Chancellor Olaf Scholz said that the block could respond if necessary with his own rates against the US, but he emphasized that it was better for the two to find agreement on trade.
The EU's foreign policy leader Kaja Kallas said in the meantime that there were no winners in a trade war, and if someone broke out between Europe and the United States, “then the one laughed at the side is China.”
Last night the British Prime Minister Sir Keir Starmer said: 'They are early days and I think what is really important, are open and strong trade relationships.
“That has been the basis of my discussions with President Trump and I know that intense USE EU discussions are planned.”
