European and Asian stock markets fell on concerns about the effects of President Trump’s trade policies and deflation in China. The fear of a potential recession in the U.S. was highlighted by declining consumer confidence. Chinese leaders have set a growth target of roughly five percent for 2025 amid rising economic challenges. Key stock indices across major markets reflected this downturn.
European and Asian stock markets predominantly declined on Monday due to investors’ concerns regarding the ramifications of President Donald Trump’s trade policies on the economies of the United States and China, the two largest economies globally. A report revealing that Chinese consumer prices have reverted to deflation further exacerbated these apprehensions about economic growth.
The primary stock markets in London, Paris, and Frankfurt exhibited negative trends near midday, following losses observed in Hong Kong and Shanghai. Conversely, Tokyo’s market concluded on a positive note.
Susannah Streeter, the head of money and markets at Hargreaves Lansdown, stated, “Unease about the effect of Trump’s tariffs hangs over financial markets at the start of the week.” She further expressed that concerns regarding a potential recession in the United States have intensified, noting dwindling consumer confidence and growing trade complexities that are fostering investor unease.
Responding to inquiries from Fox News, President Trump fueled recession fears by stating, “I hate to predict things like that.” Nevertheless, he remained optimistic about the ongoing transition and emphasized, “We’re bringing wealth back to America,” asserting that the process requires time.
As Chinese leaders conclude their annual meeting, they forecast a growth target of around five percent by 2025, emphasize domestic demand as a primary economic driver, and reveal an increase in fiscal funding. Nonetheless, recent figures showcasing a 0.7 percent decline in consumer prices in February highlighted the necessity for additional measures to stimulate China’s sluggish economy.
Stephen Innes from SPI Asset Management remarked, “The data only reinforces what’s been clear for months — deflationary pressures remain firmly entrenched in the world’s second-largest economy.” He further elaborated on the struggles of the property sector and the lack of consumer benefits despite advancements in the tech sector.
In terms of market performance,
– London – FTSE 100: DOWN 0.5 percent at 8,637.70 points
– Paris – CAC 40: DOWN 0.5 percent at 8,084.09
– Frankfurt – DAX: DOWN 0.9 percent at 22,810.93
– Tokyo – Nikkei 225: UP 0.4 percent at 37,028.27 (close)
– Hong Kong – Hang Seng Index: DOWN 1.9 percent at 23,783.49 (close)
– Shanghai – Composite: DOWN 0.2 percent at 3,366.16 (close)
– New York – Dow: UP 0.5 percent at 42,801.72 (close).
Furthermore, following foreign exchange trends indicated the euro/dollar increasing to $1.0862, while the pound fell slightly to $1.2924. Brent North Sea Crude and West Texas Intermediate both rose by 0.1 percent, priced at $70.45 and $67.12 per barrel, respectively.
The decline in European and Asian stock markets can be attributed to investor concerns regarding the impact of President Trump’s trade policies on U.S. and Chinese economic growth. The re-emergence of deflation in China has heightened fears of a recession, influencing market dynamics. As Chinese leaders set ambitious growth targets amidst economic challenges, the overall sentiment remains cautious due to ongoing deflationary pressures. Investors are advised to remain vigilant regarding these economic developments.
Original Source: www.kpvi.com
