European and Asian stocks rose at the beginning of the week’s trading today, with the support of US President Donald Trump, smartphones and computers from the huge customs duties imposed on China, which is 145%, which gave the markets an opportunity to pick up breaths after sharp fluctuations that lasted for weeks.
The Standard & Poor’s 500 futures and the Nasdaq 100 index, which is dominated by the technology sector, increased by more than 1%, after the White House excluded late on Friday smartphones and other electronic consumer devices from the exorbitant customs duties imposed earlier this month, including 125% fees imposed on China.
European stocks
European stock indicators increased during today’s trading in the latest transactions as follows:
- The British Fotsi 100 index increased 1.84%.
- The German DAX index increased 2.45%.
- The French CAC 40 index rose 2.24%.
- The Italian Fotsi MIP index increased 2.29%.
- The Spanish Ebx 35 index increased 1.9%.
- The Puritan European Stoxx 600 index increased by 2.25%.
US Secretary of Commerce Howard Lootnick said yesterday that smartphones, computers and some other electronics exempt from large customs duties on imports from China will face separate new fees along with semiconductors within two months.
Trump said that he will announce the volume of customs duties on semiconductors imported this week, adding that there will be flexibility with some companies in the sector.
Asian stocks
The performance of Asian stocks was as follows at the closure:
- The Japanese Nikki Index increased 1.18%.
- The Hanging Hong Kong index increased 2.4%.
- The Chinese Shanghai Index rose 0.76%.
- The Indian Sansx Index increased 1.77%.
- The Singapore Index increased 1.04%.
In a related context, the International Monetary Fund said that the major geopolitical events, including trade tensions, may cause major corrections in stock prices.
He explained in one of his chapters his report on global financial stability, which will soon be issued that the correction in turn may lead to fluctuations in the market, which may threaten financial stability.
The IMF did not refer to specific events, such as the comprehensive customs duties announced by the US President recently.
But he pointed out that the standards of news based on news, including conflicts, wars, terrorist attacks, military spending and commercial restrictions, have increased sharply since 2022.
In a publication accompanying the report chapters, the fund urged financial institutions to maintain adequate capital and liquidity to help deal with possible losses caused by geopolitical risks, and urged the use of endurance tests and other analyzes to determine and manage these risks.
In its report, the Monetary Fund stated that its research showed that the dangerous major events such as wars, diplomatic tensions or terrorism have led to a decrease in stock prices at a percentage per month in all countries, while the average decrease in emerging markets reached 2.5%.
Military conflicts around the world, such as the Russian -Ukrainian war in 2022, were the most prominent risk events, as it prompted stock returns to decrease at a rate of 5 degrees per month, that is, gay levels of other geopolitical risks.
Source : Reuters + Financial Times + Websites