The Australian stock market has lost $ 50 billion because Donald Trump's broad rates cause the fear of an American recession and higher consumer costs.
The Benchmark S&P/ASX200 fell 1.99 percent in the opening of half an hour of trade on Thursday morning.
By noon Sydney time, the loss percentage was moderated to 1.59 percent, with the index trade being traded on 7,808.20 points.
At the worst point in early trade, $ 50 billion Australian shares had been wiped.
The waterfalls on the Australian stock market reflected what happened on Wall Street with the flagship S&P 500 diving by two percent, because the technology targeted the Nasdaq dropped three percent.
The Australian agricultural company, the largest integrated beef producer in Australia, did even worse with the share price by 3.18 percent to $ 1.37 in early trade.
Cattle agent elsewhere saw the share price fall by 3.1 percent to $ 6.55.
Beef was the largest export from Australia to the United States last year and Trump closed the Biowralia Laws of Australia as an insult to American grazes.
The Benchmark S&P/ASX200 fell 1.99 percent on Thursday morning
“Australia prohibits – and they are great people, and great everything – but they forbid American beef,” he said.
'Yet last year we only imported $ 3 billion dollars to Australian beef last year last year. They don't take any of us beef. '
AMP Chief Economist Shane Oliver said that the fears for an American recession provided the financial markets, since the latest rates of the Trump government are now even more serious than the 1930 Smoot-Hawley rates during the great depression.
'Our rough calculation is that the second April announcement will take the average rate percentage of the US to the above levels that will be seen in the 1930s after the Smoot-Hawley rates that will in turn contribute to the risk of an American recession via a further blow to trust and disturbances of the worldwide growth and he said.
“The risk of an American recession is probably around 40 percent now.”
The Australian industrial group Chief Executive Innes Willox said that a trading war would probably increase consumer prizes by the American managed trade war, because protectionism yielded the wholesale chain of the supply chain.
“This will undoubtedly cause retribution, impose obstacles on known trade relationships and increase the costs for companies and consumers,” he said.
The Australian stock market has lost $ 50 billion because Donald Trump's broad rates cause the fear of an American recession
