After the tariff announced last week in global markets, the markets involved in the new week started with intensive sales.
Japan’s Nikkei Index in Asia is 6.69 percent and Hong Kong’s stock market decreases by 10.70 percent. China’s Shanghai Stock Exchange, which will be most affected by tariffs, decreases by 6.50 percent. Japan closed the Nikkei stock exchange to transactions in order not to increase the losses even more. The Japanese stock exchange fell 20 percent from the summit and entered the bear market.
Trump’s development, which led to intensive decreases in the markets, was the statement of Trump, “I will not give up until the US foreign trade deficit is destroyed.” Trump’s reason for announcement of tariffs was the foreign trade deficit between these countries. Nike produces shoes and sports products in Vietnam. From there he comes to the USA. This is one of the elements that increase the foreign trade deficit. Apple makes most of its production in Asian countries. Apple’s iPhone can jump from $ 580 to $ 830 for US consumers.
US Treasury Minister Scott Bessent, the purpose of tariffs to re -give the wealth to the US people. Bessent said that they always focus on Wall Street, “Now it’s time to focus on Main Street (Main Street).”
While the US tariffs lost power for the dollar, it accelerated the escape to safe ports. The Japanese gained 0.56 percent against the new dollar. The euro gained 0.27 percent against the dollar. The DXY index, which measures the power of the dollar against other currencies, decreased by 0.39 percent at 102 percent.
Oil prices started at 63 dollars with 3.50 percent of the week.
Rapid decreases in European stock exchanges
European stock exchanges also kept up with the rapid decreases in the Asian stock markets and started the week with rapid decreases. Stoxx Europe 600 and France’s CAC 40’s 6.0 percent, Germany’s DAX is 7.0 percent, Switzerland’s SMI is traded on minus. The Stoxx Europe industry index for 600 industries is traded with a decrease of 7.3 percent. The last 3 -day decline in the banking index exceeded 20 percent. Decreases exceeding 20 percent indicate that the market has entered the bear market.
US stock exchanges opened with harsh decreases
In the US stock markets, the S&P 500 index fell by 3.2 percent, while Dow Jones endkes opened with a decrease of 3.11 percent. Nasdaq, where technology shares were traded, was opened with a decrease of 3.72 percent. Then recovery was seen. The S&P 500 index fell 20 percent from the summit and entered the bear market.
The White House denied the news that Trump intends to stop tariffs for 90 days. CNBC announced the news.
The hard decline in technology shares that make the majority of production in China continues. Apple shares opened with a decrease of 6.51 percent, AMD 7 percent, chip and processor manufacturer TSM’s shares opened with a decrease of 6.14.
Blood loss continues in Tesla of Elon Musk. Tesla shares have been opened with a decrease of 7.30 percent today. Tesla shares have lost 41 percent since the beginning of the year.
Turkish Lira
The Turkish Lira is experiencing insecurity against TL due to domestic political turmoil. IMM President Ekrem İmamoğlu’nun detained week covering the week of foreign exchange deposits increased by 5.8 billion dollars. In addition to spending the reserve from the reserve to restrain the foreign exchange demand, the upper limit of the interest corridor increased by 2 basis points.
What happened also caused a change in expectations of inflation and interest. Investment banks made update update in inflation forecast, while the policy interest rates have shifted their expectations. Expectations in the domestic markets will be seen in the Market Participants’ Survey this Friday. The survey is expected to update upwardly after the 25 percent hike in electricity prices.
