The Wall Street scholarship opened with sharp losses this Friday, increasing the impact on the markets of entry into force on imports imposed by US President Donald Trump.
At 17h00 this Friday in Lisbon, Dow Jones, Nasdaq and S&P 500 had losses close to 4%.
But it’s not just Wall Street that is a sink. At 15h00, European bags also worsened their losses, with Milan losing 5.91%, Madrid 5.22%, Paris and London 3.96%and Frankfurt 3.94%.
Lisbon accompanied the wreck of the world scholarships, having registered the greatest fall Since March 18, 2020 – when the COVID-19 arrived in Portugal.
As described, Lisbon was swallowed this “Black Friday”.
On Thursday, European bags had already closed down, down about 3%. Even so, The fall was much larger in Wall Streetwhere the main indicators ended the worst day since March 2020with strong losses, which varied between 4% and 6%.
9,600,000,000 dollars lost
The market continues to be conditioned by the announcement of reciprocal tariffs by Donald Trump, this Wednesday. Since the current US president took office in January, The Wall Street bag lost 9.6 billion dollars (8.72 billion of euros).
The calculation was made by, which points out that the largest falls have occurred in the last 48 hours.
Tarump rates that have affected almost every economy in the world and encouraged a trade war and have since resulted in the loss of five billions of dollars (4.54 billion euros).
Unlike other occasions, when a day of large losses is followed by a day when investors take advantage of the lowest prices to buy shares, today is being marked by securities reductions.
Which scholarships? USA or all?
Trump calls for a reduction in interest rates
However, in an unusual request, this Friday, Trump asked to the governor of the federal reserve [FED] (US Central Bank) to reduce interest rates.
“This would be the perfect time for the president of the Fed, Jerome PowellCut the interest rates, ”wrote the Republican President, in a message on the Truth Social Network.
The US President took the opportunity to attack Powell, repeating criticism that does not respond with the speed necessary for the country’s problems.
“It’s always been late. But now it can change the image,” wrote Trump.
And is open to “offers”
Trump has also expressed availability to negotiate if the offers are “phenomenal.”
In another message in the social truth, Trump clarified that he had a “very productive discussion” about customs rates with To Lammain leader of Vietname – country on which a rate of 46%.
“Vietnam wants to reduce customs to zero rates if I can reach an agreement with the United States. I thanked it on behalf of my country and said I hope to find it in the near future,” the US president wrote in the social Truth.
On Wednesday, on a day that nicknamed “Liberation Day,” Trump imposed a 10% rate on imports from 184 countries and territories, including the EU.
In the case of China, it announced a 34%rate, adding to the 20%already in force, increasing the total to 54%.
The 10% base rate comes into force on Saturday, while specific additional rates per country will take effect next Wednesday.
Fed makes serious warnings
Jerome Powell said this Friday that the new Trump government fares should accelerate inflation and slowing economic growththe focus of the Fed) will be to maintain temporary price increases.
“Our obligation is […] Ensuring that a unique price increase does not become a continuous inflation problem, ”Powell said in comments made in Arlington, Virginia.
Powell said the tariffs and their impact in economics and inflation are “Significantly greater than expected”.
Powell’s focus on inflation suggests that – Contrary to what Trump intends – The Fed may keep the interest rate unchanged in about 4.3% in the coming months.
Following Trump’s request, Powell stated that it was “very early” to adjust the institution’s monetary policy because it was not possible to evaluate the consequences of the wave of new taxes on imported products for the US.
Economists predict that fares will weaken the economypossibly threatening hiring and increasing prices; and warn: the Growth of the world economy can reach the lowest level since 2008.
“It is unclear what the final scenario of tariffs will look like, but the cost of uncertainty is high,” says Allianz Trade economists in an analysis note, cited by Lusa, estimating that “Global GDP growth will fall to just 1.9%, the lowest level since 2008.”
Back in 2008?
Johanna KyrklundSchroders Group Investment Director, heard by Lusa, note that “Trump’s initial round points to higher than expected, and economic forecasts. [do grupo] are being reviewed down, with an expectation of US GDP growth around 1% to 2025“.
Already Paolo Zanghierisenior economist at Generali Investments, stresses in a note of analysis that customs rights are expected to impact the US more, reducing its GDP in 1,5%. In this scenario, uncertainty persists, affecting the dollar and the short -term shareholder markets, note.
Henrique Valentean analyst at ActivTrades, also highlights in a comment that the fares “surprised the markets for their scale and scope”, “investors now face deep reevaluation of immediate economic risks and possible Reconfiguration of global trade in the coming years ”.
The analyst anticipates that “the uncertainty about retaliation of US business partners will continue to weigh on markets over the coming weeks, feeding risk aversion and maintaining high volatility”, given that China has already retaliated with 34% tariffs on American goods and the EU is preparing to announce its response to 9 April.
Paul Digglechief economist at Aberdeen, estimates that “the total increase in US tariffs yesterday and in recent weeks can add 2% to price and push the Commence [dos EUA] down at 1-2%“.
