Stock markets that rattles through the recent escalation in the US China trade war

The markets were worked on Friday when the trade war continued to escalate between the United States and China.

The Stoxx Europe 600 index increased by about 1 percent after China increased its tariffs for US imports to 125 percent and regained its losses in Europe in the early afternoon. Futures Trading indicated that the S&P 500 index opened a little higher at the end of an extremely volatile week and reversed earlier losses.

The markets all over the world have severely deviated between large profits and losses in relation to turbulence and confusion by President Trump’s explanations of tariffs. The US dollar and government bonds have also dropped. Ing’s analysts said on Friday that it had a “crisis of trust” in the dollar because the US assets lost part of their Safe Haven -appell.

Beijing’s most recent tariffs took place after the markets were closed in Asia. During the trading session on Friday, the shares in Hong Kong rose by 1.6 percent, the shares on the Chinese mainland by 0.4 percent and those in Taiwan by 2.8 percent. But Japan’s Nikkei 225 fell by 2.9 percent and caught up with the Wall Street decline the day before.

All week, the markets were beaten by the different intensity and the focus of Mr. Trump’s trade policy. Steep “mutual tariffs” were imposed on dozens of countries and then 90 days later. At the same time, Washington and Beijing tariffs for goods that were traded between the countries have enlarged.

On Thursday, the S&P 500 index used 3.5 percent after the Trump government had made it clear that the tariffs for Chinese imports were 145 percent, not 125 percent, as said the day before.

At typical trading days, stock indices posted modest profits or losses, but last week the S&P 500 index suffered some of its steepest declines and its greatest one-day win since the 2000s.

This week the Vix index, a measure of volatility, which is known as Fear Street’s Fear Gauge of Wall Street, recently rose in the early days of the Coronavirus pandemic in March 2020.

The turbulence has expanded to a large number of assets. US state bonds, which are viewed as a refuge in turbulence times, have lost the value that pushed the earnings higher.

A bond sale that takes place at the same time as a decline in stocks and the US dollar has confused dealers and analysts. Some speculations have focused on whether strong losses on the stock exchange have led to the fact that investors sell their bond stocks or whether a foreign central bank sells US assets.

The 10-year-old US financing return was over 4.4 percent on Friday, the highest since February. The value of the dollar, measured by an index that is pursuing the currency towards large colleagues, has fallen to the lowest level in about 3 years.

“The dollar also has a historical weakening,” said Strategist of Deutsche Bank, adding that the markets “, as much of the historical premium for US assets that arise from the American exceptional paper, are still justified under the radical vision and volatile policy of the new US administration.”

The euro rose by more than 1 percent on Friday compared to the dollar to $ 1.13. About a week ago it was $ 1.09.

“The dollar collapse is currently working as a barometer of” Sell America “”, wrote analysts from Ing. “At this point, it is just as risky to select a low point in the dollar, as guessing to guess Trump’s step on tariffs next.”