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From: Ahmed Shawky
Mubasher: President Donald Trump's Friday tirade announced plans to impose tariffs on China, shocking global markets, at the end of Thursday's talks.
Despite continuing trade negotiations, Trump announced that the United States would impose tariffs of about 10% on Chinese imports, worth $ 300 billion as of September 1st.
Trump's remarks triggered sharp swings in global markets. The Dow Jones Industrial Average lost 300 trading points, resulting in losses of more than 280 points at the end of the session.
The 10-year US Treasury yields have fallen to their lowest level since 2016 due to trade tensions and negative economic data showing that industrial activity in the United States has fallen to its lowest level in three years.
Unemployment insurance claims in the United States increased more than expected, while spending in the US construction sector fell sharply relative to estimates.
While the gains were the share Assets secured, Where the spot price of the yellow metal has risen to around $ 30 during trading on the merits of Trump's commercial threats.
This occurred after the price of the gold futures contract was settled, after it had reduced its losses due to the falling dollar.
As seen Change market High volatility as the dollar was down after economic data and Trump's comments after hitting a two-year high earlier in the day when the Fed chairman reduced the likelihood of a new monetary easing.
When the dollar weakened, the euro rose to recover from the 26-month low recorded during the trading session.
The pound also recovered after a 30-month low, as the dollar fell before the British currency resumed its decline.
Although the safe haven currency was the Japanese yen's biggest gain after rising trade tensions, it has risen more than 1% against the dollar and the euro.
In another context, the probability of a 25 basis point rate cut to 72% increased in September after Trump's statements and economic data.
Heavy losses of oil
Oil prices have dropped about 8% at the close of trading today, recording the largest daily losses in more than 4 years.
The black gold losses are due to fears of slowing demand and rising trade tensions between the world's two largest economies.
US natural gas inventories rose more than badysts predicted last week.
Indicators and other data
European shares closed the green session today with the publication of commercial results, before Trump hit the markets with tariff statements against China.
For its part, the Bank of England decided to keep the program of interest rates and badet purchase unchanged, but lowered its economic growth forecast for the year. current year and 2020.
According to economic data, industrial activity in the euro area has contracted last month at the fastest pace since 2012, due to a sharp contraction in the euro area. activity in Germany.
Industrial activity contracted in the UK but was below expectations last month.
While the Japanese Nikkei ended in close with the fall of the yen and the decisions of the Fed.
In terms of quarterly results, General Motors' earnings increased more than badysts expected in the second quarter, while Shell's profits fell 25% over the same period.
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