The European stock markets collapsed today in a “historical” Sell-Off, affected by the last offensive on the duties of Donald Trump against the commercial partners of the United States.
Ipek Ozkardeskaya, a Swissquote Bank analyst contacted by the FP, described this Sell-Off massif as “historical”, “the largest after the pandemic and the global financial crisis for western economies, and the largest of the last 16 years for Asian markets”.
The Paris Stock Exchange travels 5.97% to 6,844.49 points and dropped over 6% in the morning. In Frankfurt, the Dax, which includes the 40 most important corporate titles in Germany, gives 6%, after having undergone a short collapse of over 10%. Both the Dax and the CAC are starting towards the worst session since March 2020, at the beginning of the global pandemic of Covid-19. The London Stock Exchange loses 4.5%, Milan 5.8%and the Swiss stock exchange 6.40%. Madrid scores -5.89% and Amsterdam -6.23%.
Saxo Banque analysts have noticed that “panic is going through the equity titles without exception”. “Mercati are experiencing one of the worst turbulence, due to the escalation of the commercial war among the main world economic powers”.
Donald Trump remained adamant yesterday on the duties imposed on the commercial partners of the United States, with his administration which stressed that more than 50 countries contacted the White House to negotiate. «The Trump team does not beat an eye. The duties are seen as a victory, not as a negotiating lever, “said Stephen Innes, an analyst of SPI Am. Last week, the President of the United States launched a commercial offensive massive in the form of very heavy rates, in particular against Asia and the European Union. The attack of the White House, which was not seen since the 1930s, provides for an additional minimum rate of 10% and increases for some countries: 20% for the European Union, 34% for China, 24% for Japan and 31% for Switzerland.
Trump minimizes the collapse of the bags, the duties are “a necessary cure”
American President Donald Trump minimizes the panic on the equity markets caused by the new duties, comparing them to “a care” destined to treat the evils of the American economy. “Sometimes it is necessary to take drugs to be treated,” Trump said to journalists aboard the Air Force One presidential plane.
“What will happen to the markets are not able to say it. But our country is much stronger,” added the American president. When asked about what his market fall threshold was, the Tycoon replied: “I think his question is so stupid. I don’t want anything to go down. But sometimes you have to take medicines to solve something”.
“This week I talked to many Europeans, Asian, all over the world. They are dying from the desire to make an agreement” on the duties, Trump stressed again, saying that he does not want to collapse the markets on purpose. “No, that’s not the case, but I want to solve the deficit we have with China, the European Union and other nations, and they will have to do it. And if they want to talk about it, I am open to speak. But otherwise, why should I want to speak?”.
On the possibility of having zero rates with Europe as supported by Elon Musk, Tycooon commented: “Europe has made a fortune with us. Europe has treated us very badly” but “they are coming to the table. They want to speak, but we don’t talk if they don’t pay us a lot of money on an annual basis”.
And on inflation risks said: “I don’t think it will be a big problem, remembering that in his first mandate” we had no inflation “.