New Delhi:
US President Donald Trump made some such statements in his address through video conferencing during the World Economic Forum, which created a stir in the global markets. He appealed to Saudi Arabia and OPEC countries to reduce oil prices. Trump said that if oil prices come down, the Russia-Ukraine war could end immediately. After this statement, a decline in crude oil prices was recorded.
Trump’s statement has affected not only the American but also the global markets. While the fall in crude oil prices may provide relief to the general public, it may also bring new opportunities for investors. Let us know 10 important things about this entire incident.
1. Trump’s announcement regarding investment in America
Trump has promised to give tax cuts to companies to promote investment in America. Trump said that he will cut taxes for companies investing in America, while higher tariffs will be imposed on companies that do not invest. (Import duty) will be imposed.
2. Appeal to the Federal Reserve to reduce interest rates
Trump urged the Federal Reserve to further reduce interest rates. He said that low interest rates will give more momentum to the American economy.
3. Urge Arab and OPEC countries to cut oil prices
Trump said in his address that he will urge Saudi Arabia and OPEC (Organization of Oil Exporting Countries) to reduce oil prices. They believe that this will provide relief to the global economy and the Russia-Ukraine war can end.
4.Fall in crude oil prices
Immediately after Trump’s statement, crude oil prices fell. West Texas Intermediate (WTI) fell 1.1% to $74.62 a barrel and Brent crude fell 0.9% to $78.29 a barrel.
5. Boom in American stock market
After Trump’s statement, strength was seen in the American stock market on Thursday. The S&P 500 index set a new record with tremendous growth. Despite the early decline, the S&P 500 index gained 0.5% to close at a new record high of 6,118.71.
6. Investors welcomed the promise of corporate tax cut.
Investors welcomed US President Donald Trump’s promise to cut corporate taxes. Investors have taken Trump’s tax cut policy positively. Investors believe that this will benefit American companies and foreign investments can be diverted towards America.
7. Impact in Asian markets
The rise in the American market also affected the Asian markets. The Tokyo Stock Exchange gained 0.8%, while the Shanghai Composite rose 0.5%.
8. Mixed trend in European markets
A jump was recorded in Frankfurt and Paris Stock Exchange, while a slight increase was seen in London Stock Exchange.
9. Movement in the foreign currency market
The euro fell to $1.0415 against the dollar, while the Japanese yen fell to 156.03 per dollar, indicating volatility in the markets.
10. China’s reaction to the decision to impose tariffs
China’s stock market fell after US President Donald Trump’s statement. Trump said that the decision to impose 10% tariff on goods imported from China is under consideration and can be implemented next month. CSI 300 Index four days Fell after a rise of Rs. Investors were hoping that Trump would not immediately take strict action on tariffs, but his statement increased concerns in the market.
However, China has also taken new steps to bring stability to its stock market, including allowing pension funds to invest in stocks and encouraging companies to buy shares.