The tendency of the markets and some currencies reacted negatively this Tuesday to the declarations of the American president, Donald Trump, who warned that there was no deadline to make a commercial agreement with China.
"The equity markets in Europe and the US futures were affected when Donald Trump raised the stake in trade again," said analyst Neil Wilson of Markets.com.
Asian markets had already closed when Trump declared, but European charts showed a clear reversal of the trend. The London Stock Exchange falls 1.6%, while the Paris Stock Exchange yields 0.7 percent. In turn, the Stoxx50 pan-European index drops 0.2 percent.RELATED
Meanwhile, the futures of the New York Stock Exchange are also in red, before the market opens. Both the Dow Jones, the S&P 500 and the Nasdaq were in a positive zone, but they went to losses around 0.5 and 0.7% when the US president declared.
In addition, on the eve, Wall Street closed with negative numbers after learning that the index of the US manufacturing activity contracted in November for the fourth consecutive month, a report that also affected the Asian stock market.
For its part, the yuan was one of the currencies most affected by the movements of the day, as investors preferred to take refuge in other safer currencies such as the yen and the Swiss franc. The price of gold also rose.
“The possibilities of an agreement (with China) for December 15 took a new downward turn. After weeks of making generally positive noises about the proximity of an operation, there is now a real sense that the operation is not so close at all and that markets need to reassess their prices, ”Wilson added.
Already last week Trump boasted that he was on the last leg of the negotiation of "one of the most important trade agreements of all time." But since then Washington has caused the wrath of the Asian giant, expressing its support for the protesters in Hong Kong. The renewal of geopolitical tensions ended up affecting the progress of the trade dialogue.
The next round of tariffs on Chinese products will begin on December 15, and investors are beginning to worry that the market consensus on a postponement of the application of the new round may be wrong.