The US stock market fears trade wars
World markets on Monday continued to go down against the background of worsening trade relations between the US and China, and the response to US threats by the Chinese people’s Bank.
Main US stock indexes on Friday fell 0.3-0.6 percent due to fears of further development of the trade conflict between the parties. Market participants are waiting for the response from China after the statements of the US President Donald trump on the introduction of fees in the amount of 10% on imported goods from China with a volume of $ 300 billion.
Asian markets on Monday closed with decrease of indices to 2.6%. An additional negative factor for these markets was a decision by the people’s Bank of China lowered the yuan to the dollar to the lowest since December last year.
In addition, pressure on the markets of the region have and news from Hong Kong where protesters blocked roads and broke the public transport. They advocate a full review of amendments to the bill on extradition.
The major European stock indices on Monday, falling 2% including corporate news, and not very good statistics for the economy of the region. Thus, the index of business activity in the service sector of the Eurozone countries were worse than market expectations.
The Russian stock market on Monday reduced by 0.3-0.4% followed global markets. While the ruble strengthened by almost 30 cents to the dollar, despite the decline in world oil prices.