Stock Markets Decline Amid U.S.-China Economic Concerns
European and Asian stock markets declined on fears of trade policy impacts on U.S. and Chinese economic growth. Deflation in Chinese consumer prices exacerbated concerns. Experts highlighted recession fears in the U.S. amid declining consumer confidence and complex trade conditions, with China’s economic targets emphasizing domestic demand amidst deflationary pressures.
On Monday, stock markets in Europe and Asia predominantly declined due to investor concerns regarding the implications of President Donald Trump’s trade policies on the economic growth of the United States and China, the largest economies globally. The recent data indicating a return to deflation in Chinese consumer prices further heightened these growth anxieties. Key stock exchanges in London, Paris, and Frankfurt reflected this trend, mirroring losses in Hong Kong and Shanghai, while Tokyo reported a slight increase.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted, “Unease about the effect of Trump’s tariffs hangs over financial markets at the start of the week.” She expressed that fears of a potential U.S. recession loom, driven by declining consumer confidence and complicated trade issues.
In a recent interview with Fox News, President Trump voiced uncertainty concerning the possibility of a recession this year, stating, “I hate to predict things like that.” He emphasized the significance of the current economic transition aimed at restoring wealth to America and acknowledged that such changes require time.
Investors also focused on the upcoming announcements from Chinese leaders concluding their annual meetings, where they designated a growth target of approximately five percent for 2025, emphasizing domestic demand as their principal economic catalyst. Recent data revealing a 0.7 percent drop in Chinese consumer prices for February underscores the necessity for measures to rejuvenate the slowing economy.
Stephen Innes of SPI Asset Management remarked, “The data only reinforces what’s been clear for months — deflationary pressures remain firmly entrenched in the world’s second-largest economy.” He pointed out that the property sector remains stagnant, domestic demand is tepid, and despite a rise in technology stocks, the overall wealth impacts are not penetrating well into consumer spending.
In summary, the stock markets in Europe and Asia fell on Monday, influenced by concerns regarding U.S. trade policies and a reported decline in consumer prices in China. Investor sentiment reflects worries about a potential recession in the U.S. and a sluggish performance of the Chinese economy. The sentiments expressed by financial experts highlight the challenges faced by the global economy, illustrating the interconnectedness of market dynamics and governmental policies.
Original Source: www.kpvi.com
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