Today, the US markets are down because of the heightening fears of a global trade war as Donald Trump, the President of the United States of America, announced the imposition of import tariffs on China.
Today, President Trump revealed that tariffs that are estimated to be amounting to $50bn over violations of intellectual property.
The head of research at London Capital Group, Jasper Lawler, stated: “Fresh tariffs from the Trump administration has put a global trade war right at the centre of market psyche. Risk sentiment collapsed sending European and US tech stocks significantly lower.
“Investors are preparing for the worst, namely a tit-for-tat reaction from China and the negative consequences it could have for the free flow of goods and services.”
At around 8 in the evening today, the Dow Jones Industrial Average was at 23,972.02, down by 2.88 percent, while the S&P 500 traded lower by 2.03 percent and the tech-heavy Nasdaq dropped by 2.24 percent.
In the United Kingdom, the FTSE 100 plunged to close at 6,952.59, down by 1.23 percent.
The financial analyst at SpreadEx, Connor Campbell, stated: “The FTSE, ignoring the fact cable pulled back under $1.41 after falling 0.4 percent, dropped more than 100 points to sit at levels not seen since late 2016.”
Campbell continued: “How the week ends now seems entirely predicated on what Trump does this evening.
“The extreme nature of the session’s losses suggests investors are truly bracing themselves for the worst, something that could result in a sharp rebound if the President doesn’t actually fire the first shot in a much-feared trade war.”