Wall St. totters on EU-US trade tension, IMF global growth outlook


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Wall St. totters on EU-US trade tension, IMF global growth outlook

On Tuesday, the 9th of April 2019, all three key indexes of Wall St. had rounded off the day deep in the red, as tensions of US tariffs on $11 billion worth of EU goods had breached the boiling point after testing traders’ nerves throughout the day.

Meanwhile, another set of tit-for-tat tariff battle initiated by Trump Administration had swept away investors’ optimism, or what was left of it, sinking Wall Street’s trade-sensitive industrial stocks heavily exposed to European trades, as a retaliatory tariff from EU would more likely to appear soon.

Adding further strains into the pre-existing wounds, the International Monetary Fund seemed to be mounting pressures on equity traders, as it had again lowered global growth outlook for 2019. According to IMF officials, Trump’s trade disputes on multiple fronts without any major hope of a quicker resolution had forced International Monetary Fund to slash global economic growth forecast further.

Besides, IMF had also warned that deeper cuts may appear, unless trade disputes, alongside a messy Brexit could have been offset in a near-term outlook. On Tuesday, April 9th, US President Donald Trump had made a declaration saying that he would be imposing tariffs on $11 billion worth of European goods, which dragged the industrial shares much lower amid an excruciating factory data and dwindling orders all over the world.

On Tuesday’s (April 9th) market closure, the S&P had concluded an eight-day long rally, posting a loss of 0.56 percent to 2,879.70, and Nasdaq Composite curbed 0.42 percent to 7,920.08, while the trade sensitive Dow had taken a heavy hammering, falling just a notch shy of 0.70 percent to 26,159.73.