American stocks fell sharply – yesterday, Friday, in the wake of unworthy economic reports, to conclude a short week in which new threats to impose customs duties and fears of the decline in the demand of consumers.
The three major American stock indicators decreased at the end of the trading session yesterday, and the three indicators recorded sharp weekly losses.
- The “Standard & Poor’s 500” index fell 1.7% on Friday, in its worst performance in two months.
- The Dow Jones Industrial Index also decreased by 1.7%.
- The NASDAC technology arrow index also recorded a decrease of 2.2%.
A report indicated that the American commercial activity is about to stop with the decline in optimism due to concerns about customs duties and other possible policies by Washington.
The reports of consumer morale and home sales were also weaker than expected.
The initial report issued by “Standard & Poor’s Global” stated that the activity was unexpectedly reduced for American services companies, and many stated in the poll a decline in optimism due to concerns about Washington.
“The companies have reported widespread fears about the impact of federal government policies, starting from spending cuts to customs duties and geopolitical developments,” said Chris Williamson, chief business and company chief of business and companies in Standard & Poor’s.
He added: “It is reported that sales are affected by the uncertainty caused by the changing political scene, and prices rise amid the increase in prices related to customs duties from suppliers.”
Europe shares are closed near their highest levels
On the other hand, European stocks closed near their highest level ever on Friday, while the German DAX index fell as investors are anticipating the upcoming early election in the country.
The European “Stoxx 600” index rose 0.5%, recovering from its lowest level in a week that it recorded on Thursday.
The index received support from the shares of health care companies after the US Food and Drug Administration said that there is no longer a shortage of drugs produced by Novo Nordsk for weight loss and diabetes.
The shares of the two companies made to the real estate of Wigofi and Ozmebek 5.8%increased.
Investors took a cautious position throughout the week, as they have been evaluating the effects of US President Donald Trump’s threats to impose customs duties and a possible peace agreement between Russia and Ukraine and the need to increase local military spending.
Investors will now turn their eyes towards the elections that will take place in Germany tomorrow, Sunday, which may result in a government led by conservatives, likely to increase spending to motivate the economy.
