New Delhi:
US President Donald Trump (Donald Trump) made some statements in his address through video crafting during the World Economic Forum, which created a stir in global markets. He appealed to Saudi Arabia and OPEC countries to reduce oil prices. Trump said that if oil prices are low, Russia-Ukraine War may end immediately. After this statement, there was a decline in crude oil prices.
Trump’s statement has affected not only American but also global markets. The fall in crude oil prices can provide relief to the general public, while it can also bring new opportunities for investors. Let’s know 10 important things of this whole incident.
1. Trump’s announcement of investment in America
Trump has promised tax cuts to companies to promote investment in the US. Trump said that he will cut tax for companies investing in America, while companies that do not invest will not invest, more tariffs on them (Import duty) will be imposed.
2. Appeal to reduce interest rate from Federal Reserve
Trump urged the Federal Reserve to reduce the interest rates further. He said that the US economy will get more speed with low interest rates.
3. Arab and OPEC countries urge to cut oil prices
Trump said in his address that he would urge Saudi Arabia and OPEC (organization of oil exporting countries) to reduce oil prices. They believe that this will relieve the global economy and end the Russia-Ukraine war.
4. Decline in square oil prices
Soon after Trump’s statement, crude oil prices declined. West Texas Intermediate (WTI) fell 1.1% to $ 74.62 per barrel and Brent crude fell 0.9% to $ 78.29 per barrel.
5. American stock market surge
After Trump’s statement, the US stock market was strengthened on Thursday. The S&P 500 index set a new record with tremendous speed. Despite the initial decline, the S&P 500 index closed at a new record level of 6,118.71 with a gain of 0.5%.
6. Investors welcomed the promise to cut corporate tax
Investors welcomed US President Donald Trump’s promise of corporate tax cuts. Trump’s tax deduction policy has been taken positively by investors. Investors believe that this will benefit American companies and foreign investment can be diverted towards America.
7. Asian markets impact
The rise in the US market also affected Asian markets. The Tokyo Stock Exchange recorded an increase of 0.8%, while the Shanghai composite increased by 0.5%.
8. Mixed trend of European markets
Frankfurt and Paris Stock Exchange recorded a boom, while the London Stock Exchange saw a slight increase.
9. Stir in foreign currency market
The euro rate came to $ 1.0415 against the dollar, while the Japanese yen fell to $ 156.03 per dollar, showing that there is instability in markets.
10. China’s response to the decision to impose tariffs
China’s stock market declined after US President Donald Trump’s statement. Trump said that the decision to impose 10% tariffs on goods imported from China is under consideration and it can be implemented next month. CSI 300 Index Four days Fall after the lead. Investors hoped that Trump would not immediately take strict steps on the tariff, but his statement increased the concern in the market.
However, China has also taken new steps to bring stability to its stock market, in which pension funds have been encouraged to invest in stocks and buy companies.
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