Cliff Notes – European stocks trend down after China’s retaliation
- FTSE 100 is down 0.47%
- Cac 40 is down 0.92%
- Dax is down 1.53%
Despite opening well this Friday morning, the three main stock indexes in Europe are now down after China announced that it will retaliate further to US tariffs – after the Trump administration confirmed the tariff on China is now 145%.
Beijing has now upped its tariff on US goods to 125%.
Since the news, the European markets have now entered the red:
- In the UK, the FTSE 100 is down 0.47%
- France’s Cac 40 is down 0.92%
- Germany’s Dax is down 1.53%
The European markets opened positively this morning, but the fall marks a sign that investors think that most companies are now likely to see their profits fall. This is because they believe the tariffs imposed by both the US and China will lower the demand for goods and push up prices.
There had been some hope after suggestions that both the US and China were looking for a solution, but it’s unclear when or how that will happen. China have called on the EU to help stop the Americans from their bullying and has said they will fight to the very end if they have to.
