Eastern hemisphere stock indexes slipped heavily on Monday, as the world was preparing for the US President Donald Trump for new customs announcements.
Trump has threatened to expand its customs on Wednesday, calling the day “for the day of release”. At least there will be extensions to duties that came into force about Mexico and Canada about a month ago.
In addition, Trump has promised so -called reciprocal customs that, according to the President, tentatively “all countries”. It is therefore likely that the United States will also disclose new duties against Asian allies and the European Union.
Japan’s Nikkei 225 index was 3.9 % after eight in Finland and had fallen to its lowest for more than six months. The wider Topix was down 3.4 %.
The mainland CSI 300 index was 0.8 % decrease and Hong Kong Hang Seng 1.5 % decline. Taiwan’s Taix index was down by 3.6 %.
The nervousness was reflected, among other things, in Asian semiconductor manufacturers.
In Japan Renesas Electronics was 10.3 percent down, chip system company Socionext 8.5 % down and semiconductor subcontractor Disco 8.0 % down.
The world’s largest chip contract manufacturer, Taiwanese TSMC was 3.7 percent down and China’s largest semiconductor manufacturer Minimum wage 4.5 % down.
“The Day of Liberation” can bring a lot of new
Donald Trump has threatened to expand his customs on Wednesday. The first so-called reciprocal duties, for example, can be directed at EU countries.
Last week, Trump announced 25 % of cars and car parts. Cars account for 8-9 % of the total imports of the United States. Previously, the Trump administration set 25 % duties on steel and aluminum products.
The Trump Administration has appointed a 20 percentage point increase in China and a 25 % duty is about 50 % of Mexico imports and 60 % of Canada imports, except for Canada’s energy imports, with 10 % customs levels.
With these, the duties of Mexico and Canada will expand to the import of all countries.
Danske Bankin senior analyst Antti Ilvonen According to the duties that have already entered into force, the total customs customs of the United States has raised about 5-6 percentage points.
According to Ilvonen, duties announced this week are likely to increase the average cost of the US trade -in -weighted customs customs as it has risen so far.
“By comparison, Trump’s first -season trade war only raised the average duty by about one and a half percent,” Ilvonen says in his last week’s market comment.
According to Ilvonen, the direct negative negative impact of customs duties on the US’s economic growth is estimated to be 0.2-0.3 %, and on top of it, the effect of potential countermeasures and rising uncertainty.
Trump has threatened to announce new duties this week, for example, for agricultural products, but there are no more detailed details.
Trump has threatened to threaten the lands of Venezuela oil with 25 % extra duties. Most of Venezuela’s oil exports are clearly to China.
In the past, Trump has also talked about at least 25 % of drugs and semiconductors, but their details and schedule are also obscure.
Western exchange also minus
On Monday, an hour before the European stock markets opened, the Euro Stoxx 50 index futures were 1.0 % down. The futures of the German Dax index and the FTSE 100 London were also minus.
Wall Street’s Futures Futures will also drop a decline in Friday’s bill. The Dow Jones futures were 0.4 decline, the S&P 500’s 0.7 % decline and the technology -focused Nasdaq 100 index futures in 1.1 % decline.
In addition to customs publishers, the United States will be rich in macrodes this week, for example, on the situation in the labor market. In Europe, however, inflation data from the euro area and Sweden will be published.