NEW YORK – The stock market shook a little around the world Thursday, shaken by the sudden rate increase in the United States caused, according to the american president Donald Trump, by a central bank “free wheel”.
At the close of the european markets, the Paris Bourse ended in net decline (-1,92%), one in London has plunged 1.94% and that of Frankfurt of 1.48%. Milan has dropped 1.84 percent, the Brussels 2,03%, and Amsterdam 1.92 percent. The index fell 2.85%.
The day after its worst session since February, Wall Street was struggling to recover and fluctuated between gains and losses.
To 16: 05 GMT at the mid-session, the index featured Dow Jones Industrial Average, retreated 0.53%, while the Nasdaq, in high coloring technology, dropped 0.09 percent, and the index expanded S&P 500 declined 0.67 per cent.
The plunge on Wall Street on Wednesday also weighed on asian equity markets.
The stock Exchange of Hong Kong has ended on Thursday, down from 3.54%, Tokyo of 3.89%, while Shanghai plunged more than 5% and that of Shenzhen of 6.45%.
Investors are notably concerned about the hardening of the policy of the federal Reserve (Fed), engaged in a process of rising interest rates after you have watered the markets money not expensive for years.
Stung to the quick by the fall of the stock market, Donald Trump has put pressure on the independent Thursday, hoping that “the Fed to be less aggressive”. The institution is a “free wheel” and its choices are “wrong”, he also estimated.
These criticisms, very few of the hand of the president, have been somewhat cleared by his chief economic adviser, Larry Kudlow, who said on the channel CNBC that Mr. Trump “does not dictate its policy to the Fed”.
Donald Trump has continually set before the rise in stock markets since he came to power as evidence of its know-how economic.
The excellent health of the u.s. economy is also his main argument for the legislative mid-term, which are held at the beginning of November and that will be difficult for his party.
Evolving in concert with the Fed rate, bond yields in the u.s. are suddenly escalated last week after comments made by the Fed chairman Jerome Powell, intimating that the institution was still tightening monetary policy to prevent overheating of the u.s. economy.
Gold investors fear that rising rates could stall the appetite of consumers and businesses for loans for investment, the purchase of real estate or consumption.
To the director of the IMF Christine Lagarde, of such increases in rates, however, are “a necessary development” and “inevitable” for economies such as the United States with robust growth, inflation increased and unemployment “extremely low”.
“I’m not sure that the rates are the main problem”, has also tempered Sam Stovall of society research investment CFRA.
“Investors appear to think that the clues are gone too high, they challenge therefore the record straight”, he added.
Combined with the questions lingering on the consequences of trade wars initiated by the White House, these fears incite, in any case, the brokers of Wall Street to be cautious. As they await the results season for companies, which between in the heart of the matter Friday with the quarterly accounts of the big banks.
The analysts also highlight other sources of anxiety to explain the fall of world stock markets.
Trade tensions between China and the United States continue to fuel fears for “their impact on the growth of china,” the second economic power in the world, have estimated the analysts of the broker Aurel BGC.
Investors “believe that the technology sector would be the main affected by a further slowdown in chinese economic activity”, they added.
The draft budget for italy, which provides a quantum leap in the country’s deficit, could also affect the european stock markets.