Sunday , July 3 2022

The US-China trade dispute has sunk European stock exchanges


European exchanges closed deep this week After US President Donald Trump announced additional customs duties on Chinese goods last week, the Chinese yuan has been sharply losing against the dollar and analysts say Chinese authorities are behind the devaluation. The euro went up and oil went down.

This week, European stock exchanges closed deep redPHOTOS: Thinkstock

American President Donald Trump last Thursday announced that on September 1, the US would impose an additional 10% duty on the remaining $ 300 billion (more than $ 268 billion) of Chinese imports, and the Chinese have already announced counter-measures. What have not yet been disclosed.

Meanwhile, the Chinese yuan has fallen to its lowest level since 2008 today against the dollar, and many believe that the weakness of the currency was caused artificially by the Chinese central bank. The US has maintained such allegations for some time, but they have continued to this day, but have been rejected in Beijing.

Currency devaluation is most favorable for Chinese exporters, as their products are cheaper for foreigners at that expense.

The European Central Bank has set the euro reference rate today at EUR 1,1182.PHOTOS: Dreamstime

The index of the most important companies in the euro area Eurostoxx 50 decreased by 1.93 percent of the trade, closing at 3310.93 points.

The Frankfurt DAX index fell 1.80 percent to 11 658.51 points, the Paris CAC 40 index 2.19 percent to 5241.55 points, and the London FTSE 100 index 2.47 percent to 7223.85 points.

The FTSE MIB index fell 1.30 percent in Milan, the Zurich SMI index 2.08 percent and ATX Vienna 1.77 percent.

The mood on the other side of the Atlantic is no more optimistic. The Dow Jones Industrial Index is up 2.21 percent from five-and-a-half hours before the close of trade, the broader S&P 500 has fallen 2.30 percent so far and the Nasdaq Technology Index is 3.06 percent.

The euro is winning, oil prices are falling

Meanwhile, the euro is picking up. The common European currency was to be deducted $ 1,1182 on the Frankfurt Stock Exchange at about 6:30 pm, 0.68 percent more than at the close of trading on Friday. The European Central Bank set the euro's reference rate today at EUR 1,1182 (on Friday at EUR 1,1106).

But oil prices are falling. The 159-liter barrel of West Texas oil, which will ship in September, was to be deducted $ 55.22 ($ 49.38) on the New York Stock Exchange in the afternoon, 0.79 percent less than in Friday. In London, Brent futures so far fell 2.17 percent to $ 60.55 (54.15) in October.

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