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The term contracts on American stock market indexes and Asian actions have dropped sharply in early trade after the Trump administration said that radical prices are kept in place despite the fears that they can induce a global economic recession.
The contracts following the first -rate S&P 500 fell by 4% and those from Nasdaq 100 to technology slipped 5%. Commercial activity is generally light early Asian morning, which can exacerbate volatility. In Japan, the Topix index fell 7.6% while the Nikkei 225 decreased 7.1% shortly after the opening. Australia S&P / ASX 200 and Kospi indices in Korea also fell by more than 5%.
The drops come after more than 5 tn $ 5 was erased From the S&P 500 Thursday and Friday at the end of its worst week since the start of the pandemic in 2020. Donald Trump’s decision to upset the world commercial order by implementing huge samples on American imports has deepened concerns concerning the trajectory of the world economy. China has announced reprisal tasks Friday 34%.
Basic products also underwent heavy losses at the start of negotiations on Sunday evening, with West Texas Intermediate, the American reference, down $ 3.4% per barrel – below the price required by most shale producers to break. The international reference Brent dropped by $ 63.35.
Copper, widely considered as an indirect indicator of the global economy because of its industrial uses, fell by more than 5% to reach $ 4.14 per book in American trade. Bitcoin dropped by 0.8% to $ 78,19 of the token. The US dollar decreased by 0.3% compared to a basket in its largest currency of trade partners, while the Japanese Yen increased by 0.8% for 145.6 JPY. The offshore Chinese renminbi, which is freely negotiated, dropped 0.2% to 7.31 CNY per dollar.
Trump had not shown any sign that he would withdraw from his pricing plan on Sunday.
“We have massive financial deficits with China, the European Union and many others. The only way that this problem can be healed is with prices, which now bring tens of billions of dollars in the United States, they are already in force, and a good thing to see,” he wrote on Truth Social.
Questioned later in the Falls market, Trump told journalists that “sometimes you should take medication to repair something”.
Earlier, Treasury Secretary Scott Bessent rejected the reaction of the market “in the short term” to the aggressive prices of the president, telling NBC that the White House “will hold the course”.
“Our business partners have taken advantage of us,” said Bessent. When asked if Trump’s prices were negotiable, he said: “We will have to see what [other] The countries offer and if it is credible ”.
His comments followed a warning from the president of the Jay Powell Federal Reserve that prices were going to “higher inflation and slower growth”.
The yield of the US Treasury at 10 years of reference, closely monitored by Trump administration officials, dropped 0.08 percentage points to 3.91%.
JPMorgan economists said on Friday that they expected the world’s largest economy of 0.3% this year “under the weight of prices”. They had previously planned American growth of 1.3%.
Some investors are concerned that shares will continue to slip until Trump indicates that his prices will be less aggressive.
Activist investor Bill Ackman, who supported Trump vocally during the electoral campaign, posted on X that “massive and disproportionate prices” risked “destroying confidence in our country as a trading partner, as a workplace and as a market to invest in capital”.
He urged Trump to call “Time Out” on Monday.
“Alternatively, we head for a self-induced economic nuclear winter and we must start to be silent,” he wrote.
DEC MULLARKEY, CEO of SLC Management, said: “Uncertainty is the big word right now and we are not even in the uncertainty of advanced policy.”
Banks and technological actions were among the hardest affected last week while the dollar dropped against other important currencies, and the yields of the Treasury, which move reverse at prices, have plummeted while investors rushed into assets percent of shelters. The European and Asian equity markets have also dropped sharply, while raw materials, including copper and oil, have dropped fears of a world trade war.
Friday, the fifth larger session of “active net discounts” has marked the fifth session of investors since 2010, according to Morgan Stanley, with short capital funds responsible for 80% of the net sale.
The drop of more than 10% of the S&P 500 to Thursday and Friday is only the fourth time in the last 85 years – after the Krach in 1987, in 2008 during the financial crisis and at the beginning of 2020 – that the index fell so far, so quickly, according to Deutsche Bank.
