Capitals: Europe and the Arab World
Market indicators show no sign of improving, despite President Donald Trump's 90-day suspension of his tariffs. The recent escalation with China, the world's second-largest economy, continues to fuel fears of a global recession, especially with some political alignments appearing to favor the White House's war on it. According to the European news network Euronews in Brussels, the sharp turmoil in global stock markets is reminiscent of the coronavirus pandemic, but the current context is heightening fears that the economy is entering a prolonged downward spiral. The S&P 500 (SPX), a gauge of market volatility, hit its lowest levels since last February. Asian markets, like those in the US, continued to decline on Friday, with Japan's Nikkei (N225) falling 4% and South Korean stocks (KS11) falling 1%, despite slight gains in Taiwan and Hong Kong. Meanwhile, selling in US Treasury bonds accelerated, while gold, a safe haven for investors, surged to over $3,200 an ounce. US Treasury Secretary Scott Preston tried to reassure Americans, saying that more than 75 trading partners were willing to negotiate with Washington, expressing his hope China is among them.
It was striking that some political alignments appeared in favor of Trump's war. Reuters reported that a manufacturing center in Vietnam expressed its willingness to take strict measures against Chinese goods shipped to the United States through its territory, in an attempt to avoid tariffs.
For his part, the US President affirmed his country's readiness to strike a deal with Beijing, accusing China of "taking advantage of Washington for a long time," as he put it.
The Asian giant, meanwhile, emphasized its position against trade provocations. The Chinese Foreign Ministry said, "The Chinese people do not want confrontation, but they are not afraid of it."
The statement added, "We will fight to the end, and any dialogue with Washington must be based on equality and mutual respect. Confronting American bullying and tyranny cannot be resolved through compromise and concessions."