Stocks and euro jump on Trump EU tariff delays

Written by Neil McKinsey, Johan Mi Sherian

LONDON/SENGAFAR (Reuters) -Global markets rose on Monday and the euro gathered after US President Donald Trump kicked his threat of 50 % tariffs on European Union commodities to July, which represents another temporary trade policy.

MSCI shares in the world’s shares increased by 0.2 %. The European stock index, which is more than 0.9 %, recovered as it was traded before Trump was unexpectedly called to a 50 % tariff on European goods, saying that negotiations with the region became very slow.

On Sunday, Trump reflected the path, as he pushed the deadline for definitions until July 9 of June, after European Commission President Ursula von der Lynn said the bloc 27 countries need more time to produce a deal.

Trump’s last move was a reminder policy for investors how quickly the conditions change. Analysts have indicated that investors are transferring their money from the American market to Europe and Asia because they are seeking a possible American stagnation and as a result global slowdown.

Commerzbank said in a note that last Friday comments were a reminder of Trump and the unpredictable policies in his administration and it seems that they are not coherent and decisions.

A note said: “Now, a Sam cocktail is truly mixed for the United States, which consists of (1) the high risk bonus of the American assets contract, (2) The movement of global investors towards increasing the diversification of the portfolio, and (3) increasing focus on the country,” adding that it expects to lose the dollar while interest rates in the United States can rise.

Euro gains

The dollar fell 0.1 % against a basket of currencies on Monday. The euro was estimated at 0.23 % to $ 1.1380 – the highest level since late April, while the pound gathered 0.2 % to 1.3567.

“It is still largely” the story of the dollar’s sale, “said Christopher Wong, an OCBC.

“Politics is the inability to predict the definitions of Trump and of course, the erosion of the exceptional American, this may still undermine feelings and confidence in the medium term.”

On Monday, trading volumes were expected to be thinner than usual, given that the markets in the United States and Britain were closed due to public holidays.

The inflated debt levels in the advanced economies were also restored to focus after Moody classified the credit rating of the United States and weak debt auctions in the United States and Japan last week.

Inflation reports come from Japan and Germany later this week, as well as price data on American goods and services.