The Global Stocks fizzled and were sent lower on Monday as a reaction to a report which stated that the US is planning to impose an additional tariff worth $257 billion on Chinese goods if Donald Trump and Xi Jinping who is China’s current President fail to bring an end to this trade war.
The additional tax on China made goods could be implemented as early as December. The Dow Jones Industrial Average (DJI), commonly known as DOW, which is a stock market index that reveals how the thirty large publicly owned companies all based in the United States have traded in stock market during the standard trading season fell some 245.3P points to 24,442.92.
The Standard and Poor’s 500.5PX suffered a loss of 17.44 points, some 0.66 percent and fell to 2641.25.
A number of stock indexes are down by 10 percent or even more from their latest highs, i.e. they are in correction territory.
The Standard and Poor’s 500 decision of leaving Italy’s sovereign resting unchanged made the shares in Europe to close broadly higher as it brought a wave of relief to the investors that there is no rating.
China’s blue-chip index dampened the Asian stock trading and stumbled down more than 3.3 percent. Chinese data underscored worries about or cooling economy, due to the declining sales of manufactured goods and raw material the profit growth at industrial firms have slowed down for its fifth consecutive month in September.
The auto sector of Europe escalated by some 4.9 percent witnessing it is strongest day since August 2015. It was in reaction of a report that China is considering to reduce by percent the tax on car purchases in order to boost the demands for autos, as it has suffered greatly from the trade war.
Source: Reuters, flipboard