The financial markets finished decreased on Monday, March 31 on Monday, March 31. In Paris, the CAC 40 index lost 1.6%, Milan 1.7; Frankfurt 1.3… Investors are tense by the perspective of customs rights increases that Donald Trump wants to impose on all countries from April 2
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It was the last market session in the quarter and fears concerning the customs duties of Donald Trump infected all the markets, the investors deciding to mark a break before the announcements of Washington. The American president intends to announce the establishment of so-called “reciprocal” customs duties, that is to say that a country that applies taxes to American products will be inflicted a customs tax of the same height on the products he exports to the United States. According to analysts, these fears have multiplied during the weekend. The American president has indeed declared that no country could avoid these taxes, which destroyed all hope of a last -minute compromise.
Do investors fear a recession? Experts are unanimous. This punitive customs duties policy should lead to a drop in economic performance in the first quarter in the United States and creates global uncertainty that slows down investments and trade. Investors are ringing alarm because the price increase, the drop in demand and the reluctance to investment are a combination conducive to creating a recession. Meanwhile on the Stock Exchange, it is the groups that work a lot with the United States that are the most penalized, but also China that Trump has in the crosshairs. All this created instability and gives rise to the worst hypotheses in terms of trade, with the impact on the profits of the companies concerned.
That said, there is nothing surprising not to see the stock market indices drop while they are at their top. This is called “profits”, that is to say that investors do not wait for the actions to break the figure and resell when the market is high, thus taking over their money placed and the capital gains made to reinvest them elsewhere. On the scholarship, as the saying wants “We buy the sound of the barrel (when the actions are low) And we sell to the bug sound “ (when the values are high). Dicton scholarship holder never had so much news.
