Customs Obligations, Employment US: European scholarships ends a week in a sharp decline

Donald Trump’s trade war is shaking the financial planet. This Friday, Asian and European scholarships have fallen sharply, under the weight of the customs duties formalized by the President of the United States. Reinforced shock, then the first signs of deterioration of the labor market in the world’s first economy.

IN EuropeThe markets ended in a bad condition for a week. At the end of the day, the CAC40 dropped by 2.91%, DAX 2.66%and London by 0.7%. The Tricolor Index emphasized its losses when the day began this Friday.

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On UNITED STATESIn the middle of the day, the situation was equally complex. At 15:40 GMT Dow Jones dropped by 1.30%, S&P 500 1.48%and NASDAQ 1.96%.

A few hours ago, in AsiaAll scholarships were closed in red. In South Korea, the Kospiti index accused the network with 3.88%. The Tokyo Stock Stock Index Nikkei Star ended 0.66%. In continental China, Shenzhen sold 0.17% and Shanghai 0.37%. In Hong Kong, the Hang Seng index lost 0.93%.

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Massive overall duties

US President Donald Trump signed a set decree for the amount of new customs duties on Thursday, which will affect several dozen countries, ranging from 15% to 41%, which will be thrown into the world economic order. “A total of about forty countries will receive a uniform rate of 15%, while a dozen others receive +Krejčí +, according to their business balance or diplomatic dexterity”He commented Stephen Innes, Spinant analyst. These “Customs rights are a threat to the global economy” Summarizes Kathleen Brooks, XTB analyst.

Products of the European Union (EU), Japan or South Korea will be taxed up to 15%, the United Kingdom products at 10%. Indonesia is 19%, Vietnam and Tai -wan suffer from 20%of surcharges. Canada sees that the duties that apply to their products are finally moving from 25% to 35% if they are subject to free trade agreement between the three countries of North America. For other countries, the shower is even cooler, such as Switzerland, which has a surcharge of 39%, even more than it was promised in April (31%).

Unemployment increases in the United States, throws interest rates

The market also responds to signs of degradation of labor market in the United States, causing fear of slowing the world’s first economy. The unemployment rate increased to 4.2% in July, compared to 4.1% in the previous month, according to official data published on Friday. The world’s first economy created 73,000 jobs in July, less than expected. Above all, the creations of employment during May and June were strongly revised down. The corrected data (19,000 in May and 14,000 in June) are exposed to the lowest of the Covid-19 pandemia.

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This publication “Defeated the discourse about the resistance of the American economy” Kathleen Brooks, the director of research for XTB, explains in the face of the protectionist policy of Donald Trump. She “Apparently strengthens the likelihood of immediate reduction in the American Federal Reserve (Fed)” According to Florian Ielpo, responsible for macroeconomic research for Lombard Odier IM.

As a result, the interest rate of the American loan was clearly reduced to 4.25% after ten years, compared to 4.37% the day before the end. For two years, the rate collapsed by 0.20 percentage point to 3.75% compared to 3.95% on Thursday evening. The dollar also fell from 1.45% compared to the euro to $ 1.1582 per euro, investors expected less good rewards for their assets in dollars.