Markets shaken by Trump

US President Donald Trump has announced new customs tariffs on certain imported products effective October 1. Accordingly, a 100 percent tax will be applied to medicines from companies that do not manufacture in the US, 50 percent for kitchen and bathroom cabinets, 30 percent for upholstered furniture, and 25 percent for heavy trucks.

These developments, combined with uncertainties regarding the US Federal Reserve's (Fed) interest rate cut process, have created a negative atmosphere in the markets. Although the US economy grew by 3.8 percent in the second quarter of the year, exceeding expectations, the decline in unemployment benefit claims and strong growth data have weakened expectations for Fed interest rate cuts.

There are disagreements among Fed officials regarding interest rate policy. While some members advocate for more aggressive cuts, others state that caution is necessary. Stephen Miran, a new Fed member appointed by President Trump, stated that the economy could be harmed if interest rates are not lowered rapidly.

US stock markets experienced a decline due to these developments. The S&P 500, Nasdaq, and Dow Jones indices lost 0.50 percent, 0.50 percent, and 0.38 percent in value, respectively. A similar negative trend was observed in European stock markets, while statements from ECB President Christine Lagarde are awaited with curiosity.

In Asia, inflation data in Japan remained below expectations, while Super Typhoon Ragasa, which lost its intensity in Hong Kong, negatively affected transportation in the region. Stock markets in Japan, China, and South Korea also followed a negative course.

President Recep Tayyip Erdoğan met with US President Trump at the White House. Topics such as the defense industry, trade, and energy were discussed during the meeting. Borsa Istanbul closed the day with a slight increase.

News Source: 12punto