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Dow rebounds from massive drop after US delays Mexico tariffs

The shares were rebounded on Monday after rushing out at the start of the transaction following the decision of President Trump, following President Trump's decision to impose new tariffs in major US trading partners, including China, Canada and Mexico.

The average of Dowjones has dropped by 560 pointsRecovered to close 122 points (0.3 %) on Monday.

S & P 500 dropped by 1.6 %, but slipping 0.8 %, NASDAQ lost 1.95 %, dropped by nearly 400 points after the opening bell, and finished 235 points (1.2 %).

President Trump, following a pledge to impose tariffs on Mexico, agreed to delay tariffs later. AP

The market has responded to the news published by Mexico President Claudia Shainbaum. He stated that the United States would refrain from imposing tariffs on the import of Mexico for one month in exchange for concessions on borders.

Weekend Trump's Canada, Mexico, and imports of tariffs on imports from China have raised concerns about the potential impact on inflation and economic growth, and promotes fear of world trade disputes.

Customs duties can affect companies in a supply chain linked to North America.

Markets around the world responded to the news on Monday morning.

Dow futures decreased by more than 600 points before the opening bell on Monday. Yahoo Finance

European stocks have declined significantly, and the German DAX index has decreased by nearly 2 %.

Bitcoin also got a hit, dropped from over $ 102,000 to about $ 95,000, and ether lost 11 %. However, Bitcoin began to recover just before noon on Monday. This is traded for about $ 98,800 per unit.

Meanwhile, US dollars gained strength, and ICE US DOLLAR Index jumped nearly 1 %. Customs duties also affected energy prices.


Follow the latest information about President Trump's tariffs


Early in the morning on Monday, West Texas's intermediate crude oil increased by 2 % per barrel to $ 74.20, but blent crude oil rose 1 % and reached $ 76.42 per barrel.

However, those prices have fallen at noon. The WTI was 0.14 % higher than the price.

The tariffs announced on Saturdays include 25 % tax on products from Mexico and Canada and 10 % of imports on imports from China.

Wall Street is paying attention to the effects of the newly placed tariffs. Getty Image

Energy imports from Canada faced a slightly lower 10 % tariff.

Canada responded with its own retaliation, but Mexico showed a similar action on the import of the United States.

Meanwhile, China has declared intention to disagree with the tariffs of the World Trade Organization. Trump also suggested that tariffs on the European Union could continue.

The European Union official warned that if Trump followed additional tariffs on imports in Europe, they would respond.

Economists and analysts have expressed concerns about the latest development.

A report from Goldman Sachs stated that the direct economic impact of tariffs may be limited, but wider results may be important.

The CBOE volatility index, an important scale of the investor centement, temporarily rises over 22 before the settlement of 19th, reflecting the growing concern in the market. AFP via Getty Images

The statement warned that these measures could deepen fears of retaliation from countries affected by future trade policy.

Market strategists emphasize that investors should take management tariffs more seriously. According to Wolfe Research reports, if the changes in this policy are suddenly reflected in market prices, you may see considerable volatility in the next few days.

The timing of the tariff presentation is consistent with the important revenue period, and more than 120 S & P 500 companies will publish a quarterly report. Among the high -notable companies reported this week, there are alphabets, Amazon and parties, along with consumer brands such as Disney and Mondes.

In addition, the latest non -agricultural salary report scheduled for Friday is expected to show that 175,000 employments have been added last month based on the estimation of Dowjones analysts.

Despite the recent turbulence of the market, the stock ended in January with positive notes. S & P 500 increased by 2.7 %, but NASDAQ complex increased 1.6 %. Dow Jones's industrial average led the road with a 4.7 % increase in the month.

Analysts are expecting continuous uncertainty in the coming weeks due to the escalating of trade dispute and the unstable market environment. Market trends greatly depends on the further development of trade policies, as a result of corporate revenue, and the major economic indicators that will be released in the next few days.

Investors are closely monitor Washington's next steps and support the potential financial impact of the latest tariffs.

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