After Trump's threats, Chinese stock market experiences worst day in three years

SHANGHAI (AFP) .- The city stock market
China has had its worst day today in more than three years, with a sharp drop of 5.58%, as a result of new threats from
US President

Donald Trump

increase tariffs on Chinese products from Friday.

After opening up in red early in the morning session, the Shanghai Stock Exchange continued to lose ground in the afternoon to close on a 5.58% loss, to 2,906 , 46 points, while the Shenzen Stock Exchange, the second largest financial

China

Continental lost 7.38% to 1,515.80 points.

On the Hong Kong stock market, the Hang Seng index fell 3.03% to 29 169.12 units.

The Chinese currency, the yuan, also suffered and lost 1.3% at one point – its worst fall in three years – before recovering slightly in the afternoon to stand at 6.7976 against the dollar, a drop of 0%. , 92%.

Reaction

Losses in China were the highest of the Asian trading day marked by mbadive stock sales in reaction to US President's statements: Trump announced Sunday a 10% -25% tariff increase for products imported from China $ 200 billion, a measure intended to pressure Beijing to reach a trade agreement with

United States.

Thus, the Republican has revived "risk aversion and panic" in the markets, said Qian Qimin, an badyst at Shenwan Hongyuan Securities in Shanghai, adding that the shares could still fall in the coming days but should " stabilize shortly ".

"Additional tariffs, if they are applied, should not have much impact in the short term because the government can use policies to compensate for this," he said.

In Europe

The remarks of the American president have also affected the markets of the old continent. However, after the end of trade negotiations with China, an agreement should be announced this month.

Around 11 am GMT, the Fráncort sack lost 1.96%, reaching 12,168.84 points; and that of Paris 1.93%, up to 5,441.80 whole. At the same time, the Ibex 35 of Madrid lost 1.57%. In Zurich, the SMI fell 1.65% to 9,580.86 points. For its part, in London, the bag was closed for holidays.

The next round of talks are scheduled for Wednesday after the tenth session held in Beijing last week. Since the December meeting between Donald Trump and his Chinese counterpart

Xi Jinping,

the two economic powers had promised not to impose customs duties.