A 20 percent import tariff on goods from Europe entering the USA—and that’s not all. The automotive industry is expected to be hit even harder. It is anticipated that the decisions made by the USA will trigger a global trade war. The stock markets trembled in after-hours trading, and it remains to be seen how European markets will digest this development. The DAX has already reacted sharply in after-hours indications and is likely to open Thursday’s trading session with a significant downward gap. The shares of automobile manufacturers are expected to be particularly affected, and investors may react in panic. Major disruptions cannot be ruled out.
Great Britain Shows Deal-Making Ability with the Trump Administration
The situation in Great Britain looks different. Politicians on the European island seem to have managed to negotiate a reasonable deal with the USA, ensuring that goods from the UK and the USA are only subject to 10 percent import tariffs. This could bring some relief to the British stock market and give investors the necessary impetus to invest in stocks. Initially, following the announcement, the FTSE 100 also moved south in after-hours trading. However, the volatile movement clearly indicates that the situation in Great Britain is considered to be more relaxed compared to that in the European Union.
Gold Unstoppable at New Record Highs
With the looming global trade war, investors continue to seek refuge in gold. The precious metal appears to be thriving above $3,000 and continues to attract capital. Gold is marching steadily northward, and at this pace, the $3,500 mark may not be far off.
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