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Three days after global turmoil in the market, it has not been seen from the first days of the Covid-19 epidemic, stocks have recovered a quarrel on Tuesday, despite a little escalating trade tensions caused by President Trump’s tariff.
Before the opening of the markets in China, the government launched a series of measures to stabilize stocks. On the other hand, the stock prices jumped in Hong Kong, a day after a decrease of 13.2 percent, and on the mainland China jumped about 1.5 percent.
The stocks in Japan gained 6 per cent, and she recovered part of the losses in the previous days. The rise in feelings followed the comments made on Monday, Treasury Secretary Scott Beesen, who said that he would soon start discussions with the Japanese government on the definitions.
Stoxx EUROPE 600 has gained about 1 percent in early trading, with almost every main market in the area in green. The European standard is still 15 percent less than its peak in early March.
Stéphane Boujnah, CEO of Euronext, who runs many stock exchanges throughout Europe, said in an interview about French radio The disturbance caused by customs tariffs made the American markets “unknown” to investors, who were transferring some of their money from the United States to Europe.
The markets around the world were not engraved last week by announcing Mr. Trump on the new wide tariff – a 10 percent basic tax on American imports, as well as much higher rates on dozens of other countries. The two countries responded to their definitions on American goods, or with revenge threats. China strongly criticized Friday, with a new tariff by 34 percent with one of the American imports.
In the United States on Monday, the S&P 500 index fell 0.2 percent after the turbulent trading that at some point withdrew the index to the bear market, or a 20 percent decrease or more than its highest level. The S&P futures, which indicate how the markets were performed when they were re -trading on Wednesday in New York, were about 1 percent higher.
Wall Street executive managers and analysts are growing an increasing concern that escalating trade tensions can cause permanent damage to the global economy.
“The faster this problem is solved, the better, the better because some negative effects increase cumulative and will be difficult to reverse,” wrote Jimmy Damon, CEO of JPMorgan Chase, in his annual letter to shareholders on Monday. Some economists in banks already expect that the economy will slip into recession later this year.
A survey of small companies in the United States, Released on TuesdayRecorded a decrease in confidence for the third month in a row, as the share of business owners expects that the conditions will improve in the future from more than others since late 2020.
Fears of economic growth in other markets were reflected, especially in the price of oil. Brent crude, the international standard, is traded by about $ 64 a barrel; It was higher than $ 80 barrels three months ago.
The 10.5 % decrease in the S&P 500 on Thursday and Friday was the worst two days of the index since the start of the Corona virus in 2020.
With the construction of new higher prices that will enter into force on Wednesday, Mr. Trump remained not softening in his commercial position. On Monday, he issued a new warning to China to cancel revenge customs duties on the United States, or face an additional 50 percent tariff starting from Wednesday.
But China showed on Tuesday that it does not deviate.
Many government departments and government -owned institutions have pledged to “maintain the smooth operation of the capital market.” And the Chinese People’s Bank, the Central Bank of the country, pledge To support the central Huijin investment, the arm of the Chinese sovereign wealth fund, which he said increases the holdings of stock funds.
In addition, dozens of companies, which were owned by many of them by the government, announced that they were buying some of its shares, a step that usually raises stock prices.
The movements of what is known as the “national team” in China reminiscent of the efforts made by Beijing during the market crisis in 2015.
At that time, the Chinese government’s efforts to increase stock prices came after its wrong steps to increase prices and then calm down. This time, Beijing’s intervention appears to be in harmony with a strategy by Chinese leader Xi Jinping, to bring his government as a fixed calmness against the global economic turmoil launched by Mr. Trump’s tariff.
It remains to see how effective Beijing behavior is. A collapse in the Chinese market a decade ago was driven by a sudden loss by investors, so the stocks helped calm the nerves. Chew ChenProfessor of Finance at Hong Kong University.
But Mr. Trump’s tariff may cause damage to the Chinese economy. “This time, it is much deeper than just market psychology,” said Mr. Chen.
Christopher Bacleyand Amy Chang Shen and Akira Davis River The reports contributed.
