Investors are preparing for a wave of extensive duties to imports to the US amid warnings of world trade, recession and new inflation rise.
World stock markets mainly fell on Wednesday, as investors were processing conflicting messages by US President Donald Trump on the imminent duties increase.
In New York, the Dow index was almost unchanged, but the S&P 500 and Nasdaq fell to lunchtime.
In Europe, Paris and Frankfurt closed down, while London has risen, as data showed an unexpected slowdown in the United Kingdom’s annual inflation.
Investors are preparing for a wave of extensive duties to imports to the US amid warnings of world trade, recession and new inflation rise.
However, Trump has made conflicting statements between hard duty on all imports and proposals that he may allow some exceptions to protect US consumers from the complete consequences of prices.
The result is the fall of the economic climate, as consumers expect higher prices.
The Conference Board said Tuesday that the consumer confidence index fell to the lowest level since 2021, during the Covid pandemic, as concerns about higher prices are increasing.
Meanwhile, the US Federal Bank is reviewing its monetary policy ahead of Trump’s duties, with some analysts warning that it may need to delay any interest rates this year.
The next important indication of the Federal Bank’s prospect for reductions will come on Friday with the announcement of an important inflation index.
While almost all European markets have dropped, defense shares overthrew the trend as one country after another pledges to increase its military spending, with Spain and Sweden being the last to announce it on Wednesday.
France’s Thales, Rheinmetall, Germany and Leonardo, Italy, have risen.
The London Stock Market increased after the news that the country’s annual inflation slowed to 2.8% in February 3% in January.
The market has kept its profits even after the announcement of Finance Minister Rachel Reeves, which reduced the forecast for half the country’s development to 1%, while announcing spending cuts, but increasing forecasts for the next three years.
Trump’s statements about tariff exemptions helped earlier markets in Asia to rise slightly after recent falls.
Copper’s future copper contracts on the New York COMEX Stock Exchange touched the highest level of record, following Trump’s statements that it could impose duties on imports of metal within the coming weeks, which has led some investors to carry the US supplies.
Source: KYPE