Asian stocks are already under pressure from increasing worldwide growth fears, dropped after New York markets decreased overnight due to the United States opened a brand new trade war which will impose tariffs on $7.5 billion of goods from the European Union.
Reportedly, MSCI’s broadcast index of Asia-Pacific shares dropped by 0.38 percent. While, Japan’s Nikkei stocks index decreased to 1.96 percent and Australian shares declined to 2.19 percent. United States Treasury yields approached a 2-year low and meanwhile, the dollar dropped against major currencies because weakening economic statistics exposed the damage that the trade dispute with China has already induced to the economy of the United States of America.
Oil futures expanded their loss in Asia because of the bigger than expected rise in the crude inventories of the US and increasing evidence of slowing economic growth point to minimum energy demand. The United States and China have already increased tariffs on each other’s goods in a year-long trade war that has hiked the risk of recession and evoked major central banks to ease fiscal policy.
The possibility that Europe will respond to American tariffs is likely to further raise concerns that the worldwide growth is set for a lengthened period of stagnation.
Several analysts urged that “The Europe tariffs are extremely concerning and its sentiment for equities will be weak too. Whereas, the EU bond market is not confident about future growth. American stock's future was increased to almost 0.21 %. Reportedly, on Wednesday, the US tariffs were approved by the World Trade Organization(WTO) but it could still cause friction across the different parts of the world. European manufacturers are facing the tariffs of the USA on steel and aluminum and a threat from American president Donald Trump to judge European cars as well as car parts.