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NEW YORK (Reuters) – European and Asian markets fell on Monday, as investors fled riskier assets after a new trade deal between the United States and China.
US President Donald Trump reacted on Friday to a new round of tariffs by imposing a 5% surtax on Chinese goods worth about $ 550 billion, a few hours after China unveiled customs duties on US products worth $ 75 billion.
In Europe, the Stoxx 600 European stocks index fell 0.51% at 07:10 GMT and volumes were low due to holidays in Britain.
Asian stocks in the red
As a result, Asian stocks traded in the red, Japanese stocks lost more than 2% today and China-related stocks led the decline, with the Nikkei benchmark falling by 2, 6% at its lowest level in three weeks.
The Hong Kong index fell by more than 3%, as did the "Shanghai Composite" by 1.4%, as trade confrontation intensified.
The Chinese yuan also fell against the US dollar, reaching its lowest level in nearly 11 years, and the Chinese currency lost about 0.8%, its lowest level since February 2008.
In oil markets, oil prices fell to their lowest level in more than two weeks, Brent crude fell 0.9% to 58.80 dollars a barrel, while crude oil fell 1.1% to $ 53.58 per barrel.
Gold is at its highest level in 6 years
With the exchange of tariffs between Washington and Beijing, the price of gold reached a new high in more than six years, global stocks being affected, it boosted demand for safe assets.
Spot gold jumped to $ 1,544.56 an ounce, its highest level since April 2013, while gold in US futures rose 0.9% to $ 1551.80 an ounce.
Madhavi Mehta, an analyst at Kotak Securities Ltd., said that "with signs of economic turbulence, we are seeing a shift in safe haven assets, such as gold, where gold and silver Stock market are generally related to the negative curve.
The following is a graph showing the trend of gold futures trading:
Bloomberg
Source: agencies
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