Black day for bags all over the world by the trade war

After several sinks down, global stock markets suffered another dark day Monday with declines in most major markets. Planet

The declines accelerated at a time when the deadline for a series of tariffs applied by the United States to Chinese products rose to 50 billion US dollars on June 6 and the retaliation that Beijing will apply to sensitive US products on the same date.

On Wall Street, Nasdaq technology, which lost more ground to fall by 2.09%, while the S & P 500 fell 1.37%. Both recorded their worst session in over two months.

For its part, the Dow Jones has finished its ninth decline in the last ten sessions after falling by 1.33%, a decline never seen since the end of May. 80 The industrial index has already lost everything that had progressed since the beginning of the year.

The technology index led declines after it appeared that the United States intended to restrict Chinese investment in local businesses developing sensitive or strategic technologies. The news has been confirmed by many sources at Bloomberg, although subject to identity.

"The United States insists that all countries that have introduced artificial trade barriers to products that go to their countries remove these barriers and will be treated with harsher retaliation by the United States", Trump said on Twitter. "Trade must be fair and no longer one-way".

Treasury Secretary Steven Mnuchin said today that the limitations will not be specific to China but will apply "to all countries trying to steal our technology." [19659003] Beyond the trade conflict, Washington reacts to Beijing's plans to move the United States as the world's greatest technological potential, as established in its latest development plan. "Made in China 2025" , which ignited the alarms of the White House, and which has been described by some observers as a plan for import substitution.

The Dow Jones lost up to 496 points at its worst, although He has reversed part of the setback to close with a negative balance of 328 units, after Peter Navarro, a Trump senior advisor in commercial affairs, said in an interview with CNBC that the restrictions will not apply in the short term

European Stock Exchanges

Following the trend of the Asian markets, the European stock markets closed with sharp declines, the regional index Stoxx Europe 600 falling by 2%, 04%, its sharpest decline since March 2 and its lowest level since April 13.

The trend was led by German Dax, which lost 2.46%, since the largest economy in the euro area is a manufacturing power exporter that can be particularly affected by restrictions on the US market, especially in the automotive sector, which is central to the concerns of President Donald Trump.

The FTSE MIB, in Milan, suffered a 2.44% fall, also struck by growing nervousness before the new populist government, after the Nationalist League of the North, which is part of the coalition, was imposed during the last municipal elections.

The FTSE 100 in London, meanwhile, also recorded strong losses, with a decrease of 2.24%, followed by the CAC 40 in Paris, which yielded 1.92%.

Declines are occurring for commodity-related sectors. Prospects for increased oil production, although limited, have also weighed on the values ​​of the energy sector today. BP and Royal Dutch Shell both fell by more than 2%.

Feel the Shot

The wave of falls was started early in the morning by Asia, where shares fell in Shanghai and Hong Kong despite central bank efforts to stop the collapse , releasing cash into the financial system, reducing capital requirements for banks.

Chinese stock markets are about to enter a bear market phase (bear market), as it is called when it is down more than 10% from its previous peak. And it could also lose the title of the world's second-largest stock market because a mbadive outflow of investors has drastically reduced its level of capitalization.

As an exporting powerhouse, China it could have more to lose than an American confrontation, and that is what investors demonstrate. As US power continues to move at full speed, its Asian rival slows down, and various observers in Beijing say the Chinese government would privately acknowledge that it underestimated the scope of the confrontation. For now, references to the "Made in China 2025" plan have disappeared from the official media, and some journalists have been instructed not to refer to the system.

Chile and the region

The trend has been particularly severe for emerging markets.

In Chile, the IPSA finished its ninth consecutive session down after posting a negative change of 1.67%, the worst day since February 9th. The indicator remained at 5,285.53 units, this is its lowest level since mid-December.

Over the last fifteen sessions, the main stock market indicator records thirteen declines. Thus, it accumulates a 7.44% decline since its last peak and is already in negative territory for the year.

In our region, the Peruvian stock market also felt the blow, losing 0.97%, while the Merval of Argentina collapsed 4.49%, also affected by an economic crisis and political, which has the government of President Mauricio Macri facing its worst unemployment at the national level.

In Brazil, Bovespa is unmarked and increases slightly, after the courts have suspended a hearing scheduled for Tuesday to discuss the situation of former president Luiz Inácio Lula da Silva, who is in prison for corruption, which has been interpreted by investors as a sign that the Socialist leader should remain in detention until October and will be out of a new election contest.