European and Asian stock markets predominantly fell on Monday due to fears regarding President Trump’s trade policies affecting the US and Chinese economies. A deflation in Chinese consumer prices heightened growth concerns. Major markets in London, Paris, and Frankfurt recorded declines, while Tokyo saw a slight increase. Investor sentiment remains cautious amidst recession fears and trade complexities.
On Monday, European and Asian stock markets experienced a decline, primarily due to investor concerns regarding President Donald Trump’s trade policies and their potential impact on economic growth in both the United States and China, the two largest economies globally. Additionally, data revealing that Chinese consumer prices have fallen back into deflation further exacerbated worries about economic expansion.
Major indices in London, Paris, and Frankfurt saw losses, mirroring declines in Hong Kong and Shanghai. Conversely, Tokyo’s market concluded with a modest gain. Susannah Streeter, head of money and markets at Hargreaves Lansdown, commented, “Unease about the effect of Trump’s tariffs hangs over financial markets at the start of the week.” She raised a note of caution regarding a potential recession in the United States, attributing this to dwindling consumer confidence and increasing trade complexities.
In a Sunday interview with Fox News, President Trump expressed his reluctance to predict a possible recession occurring this year but acknowledged a challenging transition period. He stated, “I hate to predict things like that” and emphasized his administration’s efforts to bring wealth back to America.
Meanwhile, the Chinese government wrapped up its annual gathering, where leaders outlined a 2025 growth target of approximately five percent and pledged to prioritize domestic demand as the central economic engine. However, figures showing a 0.7 percent drop in consumer prices for February highlighted the need for more measures to stimulate China’s struggling economy. Stephen Innes from SPI Asset Management remarked, “The data only reinforces what’s been clear for months — deflationary pressures remain firmly entrenched in the world’s second-largest economy.”
Regarding key market performance around 1100 GMT, the following figures were noted: London’s FTSE 100 decreased by 0.5 percent at 8,637.70 points; Paris’s CAC 40 fell by 0.5 percent at 8,084.09; and Frankfurt’s DAX dropped by 0.9 percent at 22,810.93. In contrast, Tokyo’s Nikkei 225 rose by 0.4 percent at 37,028.27. Other notable figures included a decrease in the Hong Kong Hang Seng Index by 1.9 percent and a slight drop in the Shanghai Composite by 0.2 percent.
In currency markets, the euro strengthened against the dollar at $1.0862, while the pound slightly declined to $1.2924. Brent crude and West Texas Intermediate saw modest increases at $70.45 and $67.12 per barrel, respectively.
In summary, stock markets in Europe and Asia experienced significant declines due to concerns over trade policies and economic growth amidst deflationary trends in China. Investor sentiment remains fragile, especially in light of potential recession fears in the United States. Prominent indices illustrate a negative trend, while key economic indicators raise further questions about global economic stability and the efficacy of proposed growth measures.
Original Source: www.kpvi.com
