Trump's tax policy shakes the global stock market

Trump's decision to impose import taxes on countries like Canada, Mexico, and China has affected the US stock market the most, and Europe has also fallen.

Falgun 23, 2081

Kantipur Reporter

Trump's tax policy shakes the global stock market

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Most of the decisions made by US President Donald Trump after taking office have shaken the world economy. The direct impact of which has been seen in the stock market along with world trade.

The biggest impact has been on the US stock market. However, major US stock markets closed higher on Thursday. Stock markets in Europe, West Asia and Africa (Asia Pacific) are only partially affected. However, the South Asian stock market has been somewhat affected, according to the international media.

The US has imposed a 25 percent import tax on various goods imported from Canada and Mexico since Tuesday. US President Trump has imposed import taxes on Canada and Mexico for failing to stop illegal immigration and the smuggling of illegal fentanyl. A 10 percent tax has been imposed on Canadian energy production. Likewise, 10 percent tax has been added to imports from China. 

The new tax was implemented hours before Trump addressed a joint session of Congress for the first time in his second term. Trump, starting his second term in the White House, announced steep tariffs on foreign goods. Trump has already said that he will impose a 10 percent tax on goods entering the United States from China and the European Union. Canada and China immediately responded to the US decision. Canada has announced a 25 percent import tax on $1.55 billion worth of American goods. It is also predicted that the stock market of other regions will be affected along with America. 

America

The main indicators of the American stock market on Wall Street closed higher on Thursday. The 'S&P 500' index, which has a majority of companies in the financial and service sector, closed with 64.48 points (1.12 percent) and the 'NASDAQ' composite, which listed information technology and biotechnology companies, closed with an increase of 267.57 points (1.46 percent). On a monthly basis, the 'S&P 500' index is seen to decrease by 3.96 percent, while on an annual basis, this index is positive by 13.77 percent. 

"Nasdaq" which has fallen by 7.15 percent monthly, is still positive by 14.45 percent annually. The stock market was affected especially by the decisions made after President Trump took office. Hence stock markets have turned negative on a daily, weekly and monthly basis. However, the indicators are still positive year-over-year as the stock markets rose at a higher rate before his second term as president. 

Likewise, the Dow Jones Industrial Average, a joint index of 30 companies, closed at 485 points on Thursday, but has declined by 3.89 percent on a monthly basis. However, there has been a sharp decline in this index since the last few days. According to which, only on Tuesday, this index had a decline of 650 points. International media have pointed out that such a drop in one day is the highest since Trump became president. However, on Wednesday and Thursday, this indicator increased by higher points. 

Similarly, the combined index of the New York Stock Exchange also closed on Thursday with 259 points (1.33 percent) and the combined index of S&P closed with 298 points (1.22 percent). On a monthly basis, New York stocks fell 2 percent and the S&P composite index fell 2.60 percent, according to Bloomberg. However, both these indices are in a positive state annually. 

Europe

According to the international media, although the European stock market was not affected much by Trump's decision, most of the markets closed down on Thursday. The CAC 40 index in Paris closed down by 41.41 points (0.51 percent) in Thursday's trading. The DAX index in Frankfurt closed up by 113 points (0.49 percent). These indicators have also increased by high marks monthly and annually. 

London-based 'Footsie 100' has also closed down by 79.58 points (0.91 percent). On a monthly basis, this index has declined by 0.54 percent and has increased by 13.16 percent annually. The stock markets of countries including Denmark and France are going down

on Thursday. However, the stock markets of Turkey, Poland, Germany, South Africa etc. have increased a bit. 

Asia Pacific 

The stock market in the Asia Pacific region has been partially affected by President Trump's latest decision. Some of the major stock markets in this region have gone down and some have gone up on a monthly and yearly basis. According to which, on Thursday, Japan's Nikkei closed with an increase of 286 points or 0.77 percent. However, this index decreased by 3.49 percent monthly and 5.95 percent annually, according to Bloomberg. 

Tokyo Stock Exchange's price index Topix also increased by 33.20 points or 1.22 percent. However, this indicator decreased by 0.03 percent monthly and is positive by 0.76 percent annually. Australia's main stock market 'S&P - ASX 200' fell by about 46.40 points (0.57 percent). This index decreased by 5 percent monthly and increased by 4.67 percent annually. 

In 15 countries of the Pacific region, the joint index of stocks "MSCI Asia Pacific" has closed down by a few points. This indicator, which is generally positive on a monthly basis, has closed by 6.64 percent on an annual basis. However, the decision of US President Trump does not seem to have any effect on the stock market of China and Hong Kong. China's stock market continued to rise, while Hong Kong had a modest impact. 

Similarly, the Indian stock market closed higher on Thursday, but monthly and yearly figures remain negative. India's Bombay Stock Exchange (BSE 100), Sensex, Nifty 50 and other indices closed higher on Wednesday. However, the Bombay Stock Exchange (BSE 100) fell by 4.89 percent on a monthly basis and is positive by 0.75 percent on a yearly basis.

Sensex closed up 602 points on Thursday. This indicator has increased by 0.34 percent year-on-year, which was negative at 4.76 percent monthly. Nifty 50 also closed up 200 points. However, this market, which decreased by 4.49 percent monthly, increased by 0.31 percent annually, according to Bloomberg. 

Nepal

Although there is no direct international impact, the stock market in Nepal has been continuously falling in recent days. According to which, on Thursday, the NEPSE index, which measures stock trading, decreased by 2.70 points to 2,817.43 points. It has decreased by 2.70 percent compared to the previous day. On Monday, Tuesday, Wednesday, the NEPSE decreased with high scores and followed the same trend on Thursday as well. 

The share price of 100 companies traded on that day increased, 131 decreased, and the remaining 12 remained stable. 109 million 41 thousand 501 shares were bought and sold in 93 thousand 895 transactions. About 10 billion 10 million 18 million rupees worth of transactions have been done in those purchases. Compared to Wednesday, the transaction amount decreased on Thursday.

Kantipur

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