New Delhi:
The Asian stock markets on Wednesday saw a decline in the Asian stock markets on Wednesday amid Donald Trump’s constantly changing trade policies and the possibility of recession in the US economy. Investors are worried that heavy tariffs imposed by Trump may push America towards recession. Investors’ notion was weak in Asian markets on Wednesday after a huge decline in American markets on Tuesday.
Tokyo, Seoul, Jakarta and Taipei had a slight increase, while Hong Kong, Shanghai, Singapore, Wellington and Manila recorded a decline. The Sydney market dropped more than 1%, as investors are worried that Trump’s new tariffs can affect the Australian economy.
Despite pressure in the global market, Indian market booms
The Indian stock market started on Wednesday with an edge, while global markets including America, Asia and Europe were under pressure. In early trade, the Sensex reached 74,338.89 points, making a sharp lead of 236.57 points, (0.32%). The Nifty was also trading at 22,564.35 points with a gain of 66.45 points (0.30%).
Trump tariff has great ups and downs in global markets
This month, the global markets have seen a lot of ups and downs, as Trump is constantly increasing pressure on business partners. The decision to impose a duty of 25% on all aluminum and steel imports in the US has been implemented from Wednesday (12:00 AM Washington Time), affecting many countries including Brazil, South Korea and European Union.
Trump threatened to double the fee on Canada
On Tuesday, Trump threatened to double the fees on Canada, but later withdrew it when Ontario removed the power surcharge imposed on the US states. Trump’s such uncertain trade policy has increased instability in markets. Wall Street’s Vix “Fear Index” has reached its highest level since August, increasing the concern of investors.
Trump rejected the possibility of economic recession
However, HSBC analyst Nicole Inui said that “repeated statements about tariffs have affected consumer and business confidence, the uncertainty of policy is at record level, consumer confidence has declined sharply, and weakened the enthusiasm of small businesses.”
Impact of Trump’s new tariff scheme
Explain that Trump announced a plan to impose 50% tariff on Canadian steel and aluminum imports, which increased the concern that it could cause a slowdown in the US economy. On Monday, the S&P 500 suffered its biggest one -day loss after December 18, disappearing a value of $ 1.3 trillion and the total loss reached 4 trillion dollars. Tech-Havi Nasdaq also saw a huge decline last week.
Russia-Ukraine expected relief from the possibilities of ceasefire
However, the news of the possibilities of Russia-Ukraine ceasefire saw a little recovery. Investors got some relief from Ukraine’s announcement of military assistance and sharing intelligence information. Kiev expressed the possibility of a 30 -day ceasefire. Despite this, S&P 500 42.77 points (0.76%) closed down, NASDAQ 33.86 points (0.19%) dropped, and Dow Jones 483.98 points (1.16%) decreased.
Trump’s constantly changing trade policies have intensified the market and economic data is also indicating recession. Now everyone’s eye is on Wednesday’s US Consumer Price Index (CPI) report, which will help in detecting inflation trends.
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