US stocks continue to fall according to the Trump tariff comment comment; Euro high

New York: The US shares had dropped sharply on Monday afternoon after US President Donald Trump announced that 25 percent tariffs come into force in Canada and Mexico on Tuesday and mutual tariffs will start on April 2, while the euro had been reinforced after the European leaders had approved a peace plan of Ukraine.

US indices reached a session low after the tariff comment, with the S&P 500 declining by more than 2 percent.

The dollar rose to the Mexican Peso and the Canadian dollar according to the tariff comment.

Trump also said that “there was no longer a place for a deal that would avert the tariffs. The Canadian foreign minister said the country was ready if the tariffs continue.

The euro rose by 1.03 percent of $ 1.0481, during the dollar index, which measures the greenback against a currency basket, decreased by 0.65 percent to 106.61.

The European state and government heads agreed on the weekend to create a peace plan that is based on the Ukrainian President Volodymyr Zelenskiy’s Clash with Trump in the Oval Office.

“This is certainly positive for Europe because it combines more from Western Europe, including Ukraine and a line for the Russians who were very transparent that they wanted to reproduce the old Soviet Union,” said Tim Ghriskey, Senior Portfolio Strategist at Ingalls & Snyder in New York.

The European recognition of the need to issue more for defense sent shares in the European arms manufacturers.

Reuters reported that parties in discussions on the formation of the new government of Germany are considering setting up a defense fund.

The US economic data on Monday also burdened shares. It showed that the production in February was constant, but a level of prices at the workshop increased to almost three years and the material deliveries took longer, which indicated that the tariffs for imports could soon hinder production.

The Dow Jones Industrial Average fell by 850.43 points or 1.92 percent to 42,997.96 points, the S&P 500 fell by 132.23 points or 2.22 percent to 5,822.95 and the NASDAQ composite fell by 575.92 points or 3.05 percent to 18.273.23.

MSCI’s stock meters worldwide fell by 7.48 points or 0.87 percent to 855.47 points, while the Pan-European Stoxx 600 index ended by 1.07 percent.

Bitcoin was lower after climbing on weekends than Trump increased the possibility of a new US strategic reserve that comprises a number of tokens.

Trump released Truth on Sunday that his implementation regulation would create a stock of currencies for digital assets in January, including Bitcoin, Ether, XRP, Solana and Cardano.

Trump did not provide any details about how the fund would work, but it was enough to revive the crypto bulls that had taken a serious knock last week.

“Trump has just given the pump for which crypto dealers held,” said Matt Simpson, Senior Market Analyst at City Index.

Bitcoin was 7.6 percent compared to the high on Sunday.

After the last reading of production, the returns for longer US financing were lower.

The return for benchmark US 10 Year emergency fell from 4.229 percent on Friday by 6.4 basis points to 4.165 percent.

Also the key this week is the January -UUS -OFF Operation report in January.

A recent flood of soft economic data has also deleted the expectations that the Federal Reserve may be more active when lowering interest rates.

This year, the markets are costs in 65 basis points in cuts of the Fed, from previous settings for hikes of a total of fewer than 50 basis points.

The European central bank is generally expected to reduce interest if it meets on Thursday, although there is less conviction about what could signal about the monetary policy prospects in the face of geopolitical factors.

(Additional reporting by Wayne Cole and Stella Qiu in Sydney; Editor from Edwina Gibbs, Emelia Sithole-Matarise, Susan Fenton, Richard Chat and Nia Williams)