Stock Markets spooked by President Trump

I was on the flight home on Friday (23 March) touched down at 7.00 pm and when I looked at the stock indices, Shanghai Composite lost 3.39%, Nikkei 225 lost 4.51% and Singapore’s STI lost 2.00%. That was ugly. I searched for reasons for the carnage. As it turned out, President Trump had signed an executive memo to slap tariffs on US$60 million imports from China. China fired back with tariffs targeting at US$3 billion of US import into China. The fear of trade war between two top world economies looms.

During the period I was away, the stock indices moved downwards between 3 March and 23 March (3 weeks).

Stock Indices 3-Mar-18 23-Mar-18 Change
Dow Jones (USA) 24,538.06 23,533.20 -4.1%
Shanghai Composite 3,254.53 3,152.76 -3.1%
Nikkei 225 (Japan) 21,181.64 20,617.86 -2.7%
STI (Singapore) 3,479.20 3,421.39 -1.7%
Hang Seng (HK) 30,583.45 30,309.29 -0.9%
Germany DAX 11,920.12 11,886.31 -0.3%

The worst hit indices were Dow Jones (-4.1%) and Shanghai Composite (-3.1%). The Straits Times Index lost 1.7%.

Lesson learned was that stock markets could gyrate by politics of nations.

Copyright © 2018, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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