Things worsened as the US markets got involved this Monday, the trade war fearing losses turning even uglier as the afternoon wore on.
Beyond the basic fact of the rumoured next round of China-attacking trade restrictions set to be announced by Trump this week, ones specifically targeting the tech sector, an announcement from Harley-Davidson seems to have played its role in the bloodying of trading boards this Monday. The motorcycle firm said it would be shifting production of bikes for EU destinations out of the US in order to avoid the ‘substantial’ burden of the retaliatory tariffs introduced by the European Union last week.
That concrete example of the impact of Trump’s approach to trade has added fuel to the market dumpster fire, with the Dow Jones nearly doubling the losses suggested by its futures. The US index plunged more than 300 points after the bell, in the process falling below 24300 for the first time for more than 7 weeks.
The European markets were even gorier. The CAC dropped 1.3%, with the DAX shedding 200 points to hurtle towards 12350. Worst was the FTSE, which completely lost its head, falling 2% as trade war terror mingled with Brent Crude’s 1.9% decline – and subsequent 2.5% and 3.2% losses for Shell (LON:RDSa) and BP (LON:BP) respectively – creating an unbearable weight for the UK index.
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