Menu

New punitive tariffs announced: Trump tweets – Dax smears off


            
              Monday, December 02, 2019
              
                

            
              US President Trump proves again and again what massive impact 280 characters can have. On Twitter, the head of state announces the imposition of punitive tariffs on aluminum and steel imports from two countries. In German stock trading, the news is beating high waves.
              December could not have started much worse on the German stock market. It looked good at daybreak: After better than expected failed economic data from China and the Eurozone, the Dax put on until noon. But then US President Donald Trump misses the mood of investors with the announcement of punitive tariffs. The courses continued to crumble in the afternoon, the Dax finally lost 2.05 percent to 12,964.68 points. He dropped below the 13,000 mark for the first time since the beginning of November. In the middle of the trade dispute with China and the EU, Trump surprisingly announced the imminent reintroduction of tariffs on steel and aluminum imports from Brazil and Argentina. The two countries have made a massive devaluation of their currencies and that is not good for US farmers, tweeted the head of state. "Therefore, with immediate effect, I will restore tariffs on all steel and aluminum shipped from these countries to the US." Details did not mention the US president. Argentine production minister Dante Sica said in a first reaction that Trump's announcement came unexpectedly. He will now seek talks with his US counterparts. Brazilian President Jair Bolsonaro told a local radio station that he would call Trump so that US President Brazil would not be punished. Bolsonaro had in the past strived for closer ties with the United States. New SPD duo stirs up Dax 12,964.68 Meanwhile, for the stockbrokers, weak data from the US and construction industries was added in the afternoon. The MDax of the mid-sized stock market lost 1.57 percent to 27,029.90 points at the beginning of the week. He reached a historic high of around 27,637 points in the middle of last week. In terms of the individual stocks, the shares of RWE were down 5.4% at the end of the Dax. With the designated new SPD party leaders Saskia Esken and Norbert Walter-Borjans, the government is now drifting back to the left and becoming greener at the same time, wrote analyst Ingo Becker from investment house Kepler Cheuvreux. Thus, the expectations of the compensation payments for the exit from coal-fired power could be bitterly disappointed.

Leave a Reply

Your email address will not be published. Required fields are marked *