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European stocks went down Monday in response to US threat Donald Trump’s 30 per EU percentage of the EU, the latest increase in his trading war.
The Dax Index in Germany fell 0.7 percent while CAC in France is 5.5 percent. StoXX Europe 600 width, which includes non-EU markets such as UK, fell by 0.3 percent.
Movements arrived after Trump announced the planned levies on Saturday, pushed the Bloc to delay the planned reciprocity TARIFF In the US in the hope of reaching a Washington agreement before August 1 deadline.
Trump’s announcement marks the latest in a series of trading threats from US administration last week. Market reaction is limited, with some investors saying they expect him to leave from his steepest threat before August 1.
“After a time of relief that tariffs can be handled amongst the vulgar threats, some concerns can encourage Trump to encourage,” as Guy Marketist in Zurich. “I think it’s legitimate, with a high risk of summer destruction, even more modest and contained in April.”
A stoxx 600 sub-index tracking tracking freight and other car companies fell 1.1 percent. Mercedes-Benz and BMW both fall by 2 percent.
The firms also suffered to sell the US. Hermes’ parts falls 2 percent and kering fell 1.8 percent. Pandora dropped 2 per cent.
The euro is flat against the dollar.
Futures contracts tracking the S & P 500 index pointed 0.3 percent below Monday morning.
Peter Schaffrik, principal European Macro Strategist at RBC Capital
However, he added: “Personally I’m a little worried. We’ve been here before.
“Without negotiation negotiations, I can’t see how it gets to bed – so they can take revenge.”
The analysts say that the greater amount of sale is likely if the 30 percent tariff – Trump threatened against Mexico Saturday – is in force.
Barclays wrote that “If the US is actually to increase the tars of EU items to 30 percent, the risk of shrinkage is likely to send reasons to bring ranges.”
However, Barclays Note increased “We doubted tariffs at the high-level tariffs threatened by Trump.”
