European and Asian stock markets declined on Monday amid fears regarding the impact of President Trump’s trade policy on the US and Chinese economies. A weak report on Chinese consumer prices indicating deflation exacerbated growth concerns. Key stock indices in London, Paris, and Frankfurt fell, while Tokyo ended positively. The ongoing economic transitions and potential recession worries were highlighted by experts.
On Monday, European and Asian stock markets witnessed declines as investors expressed concerns regarding the possible ramifications of President Donald Trump’s trade policy on the economic stability of the United States and China, the largest economies in the world. A report indicating a downturn in Chinese consumer prices, reverting to deflation, further aggravated apprehensions concerning economic growth.
The stock exchanges in London, Paris, and Frankfurt all experienced downturns, reflecting losses in Hong Kong and Shanghai. Conversely, Tokyo’s market concluded with gains. As Susannah Streeter, head of money and markets at Hargreaves Lansdown, remarked, “Unease about the effect of Trump’s tariffs hangs over financial markets at the start of the week.”
Streeter highlighted that concerns regarding a potential recession in the United States persisted, alongside declining consumer confidence and businesses grappling with increased trade complexities. President Trump contributed to these concerns during a Fox News interview, stating, “I hate to predict things like that,” but acknowledged the significant economic transitions underway.
Investors continued to monitor developments in Beijing as Chinese officials concluded their annual meetings, aiming for an annual growth target of approximately five percent by 2025. The Chinese government pledged to enhance domestic demand as a main economic driver and announced a rare increase in fiscal funding.
The need for additional measures to revive China’s struggling economy was underscored by recent data revealing a 0.7 percent decline in consumer prices for February, marking the first decline in over a year. Stephen Innes of SPI Asset Management noted that “the data only reinforces what’s been clear for months — deflationary pressures remain firmly entrenched in the world’s second-largest economy.”
The following key indices were observed around 1100 GMT: London’s FTSE 100 decreased by 0.5 percent to 8,637.70 points, Paris’s CAC 40 fell by 0.5 percent to 8,084.09, while Frankfurt’s DAX dropped by 0.9 percent to 22,810.93 points. In contrast, Tokyo’s Nikkei 225 saw a rise of 0.4 percent to 37,028.27.
In conclusion, stock markets across Europe and Asia experienced declines on Monday, largely due to concerns over trade policies impacting the US and Chinese economies. A significant drop in Chinese consumer prices further fueled anxieties regarding economic growth, leading to reduced investor confidence. With President Trump’s comments hinting at potential economic transitions and uncertainties, the situation remains fluid and warrants close observation.
Original Source: www.kpvi.com
