Global Stock Markets Decline Amid Economic Concerns in US and China
European and Asian stock markets fell as fears of economic slowdowns in the US and China arose from Trump’s trade policies and weak readings on Chinese consumer prices. Market indices reflected declines, while a potential US recession lingers in investors’ minds. Chinese leaders set a modest growth target amidst concerning economic figures.
On Monday, European and Asian stock markets predominantly declined due to concerns regarding President Donald Trump’s trade policy and its potential impact on the economic growth of both the United States and China, the foremost global economies. Additionally, a downturn in Chinese consumer prices, signaling a return to deflation, intensified these growth apprehensions.
Stock exchanges in London, Paris, and Frankfurt experienced losses, reflecting the downward trends of markets in Hong Kong and Shanghai, although Tokyo’s market recorded an increase. Susannah Streeter from Hargreaves Lansdown highlighted that uncertainty regarding Trump’s tariffs is looming over financial markets as the week commenced.
The potential for a recession in the United States is increasingly becoming a concern, compounded by dwindling consumer confidence and heightened trade complexities faced by companies. President Trump, when prompted by Fox News about the possibility of an impending downturn, expressed reluctance to make predictions, while emphasizing a transitional period essential for reclaiming wealth for America.
Meanwhile, attention turned to Beijing, where Chinese leaders concluded their annual meeting. They set an annual growth target of approximately five percent for 2025 and committed to prioritizing domestic demand as the central economic driver, amidst a rare increase in fiscal funding.
Recent figures indicated a 0.7 percent decline in consumer prices in February, marking the first decrease in 13 months and underscoring the necessity for measures to invigorate China’s sluggish economy. Stephen Innes from SPI Asset Management noted that deflationary pressures remain deeply entrenched within the Chinese economy, exacerbated by a stagnant property sector and weak domestic demand that fails to benefit consumers despite fluctuations in technology stocks.
Regarding market performance around 1100 GMT:
– London – FTSE 100: Down 0.5 percent to 8,637.70 points
– Paris – CAC 40: Down 0.5 percent to 8,084.09
– Frankfurt – DAX: Down 0.9 percent to 22,810.93
– Tokyo – Nikkei 225: Up 0.4 percent to 37,028.27 (closed)
– Hong Kong – Hang Seng Index: Down 1.9 percent to 23,783.49 (closed)
– Shanghai – Composite: Down 0.2 percent to 3,366.16 (closed)
– New York – Dow: Up 0.5 percent to 42,801.72 (closed)
– Euro/dollar: Up to $1.0862 from $1.0844 on Friday
– Pound/dollar: Down to $1.2924 from $1.2925
– Dollar/yen: Down to 146.99 yen from 147.97 yen
– Euro/pound: Up to 84.06 pence from 83.87 pence
– Brent North Sea Crude: Up 0.1 percent to $70.45 per barrel
– West Texas Intermediate: Up 0.1 percent to $67.12 per barrel.
In summary, concerns over trade policies, potential recessions in the United States and China, and declining consumer prices have contributed to a downturn in various stock markets. Notably, China’s economic challenges and the implications of tariffs imposed by the Trump administration are significant factors influencing market behavior. Traders are advised to closely observe economic indicators and governmental announcements that may shape future market trends.
Original Source: www.news-expressky.com
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