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The main world stock markets fell again this Monday, in the wake of Wall Street losses last week, for fear that tensions on the coronavirus provoke a new trade war between the United States and China.
The accusations of the President of the United States, Donald trump; and the secretary of state, Mike Pompeo, claiming that the coronavirus was created in a laboratory in Wuhan (China), concealed in the markets the improvements in the rate of contagion of the pandemic.
Last week the three main indices of the New York Stock Exchange closed with falls of between 2.6% and 3.2%, after having lived the best month of April in decades.
Following in its wake, Asian stocks opened lower on Monday after a three-day weekend.
Hong Kong fell 4.2% and Bombai more than 5%. Stock markets in Seoul, Taipei, Singapore, Manila and Jakarta also fell more than 2%, but Sydney added more than 2%.
The Tokyo and Shanghai stock exchanges were closed for holidays.
In Europe, the stock markets also opened lower. The Frankfurt Dax fell 3.25%, Paris 4.0%, the FTSE 100 London 0.17%, the Ibex-35 Madrid 2.66% and the FTSE Milan almost 3%.
The Investors fear Trump, as hinted, will apply new tariffs on Chinese products in retaliation, whom he accuses of mismanagement of the coronavirus.
The trade war between the two major world economies already destabilized markets last year before a partial truce in December.
“President Trump sounds the drums of trade war again (…) increasing the chances of significant volatility risk ”said Stephen Innes of AxiCorp’s.
Analysts warn that after strong April rises – fueled by optimism that the worst of the pandemic had passed – stocks could experience a tumultuous month of May as business results and other indicators reveal the real economic situation.
“For several weeks now the prospect of significant monetary and fiscal stimulus had led to a rebound in the equity markets,” said CMC analyst Michael Hewson, warning that the situation is changing.
The red in the markets raised the dollar against riskier currencies such as the Mexican peso, the Australian dollar or the South Korean won.
For their part, the prices of Petroleum They fell after last week’s increases as the world’s leading producers begin to implement the agreement to limit their production to around 10 million barrels a day.
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