Further escalation of the United States and China trade war has resulted in global stock markets having another period of pain, with gold and Bitcoin experiencing a rise.
After Trump imposed more taxes on imports on Friday, resulting in a fall of 2.4% in sell-off on the same day, the Financial Times Stock Exchange 100 Index (FTSE 100 index) experienced a fall of a further 2.3% on Monday, thus leaving the index on just 7237 points.
This result came after several indexes in Asia suffered greatly on Monday, particularly Hang Seng in the protest-driven Hong Kong by 2.9%, as well as Japan’s Nikkei losing 1.7%, with the latter mainly building on sharp losses that it experienced on Friday.
Furthermore, there were also declines in Europe, with the DAX in Germany and the French CAC suffering, losing 3% of their whole value.
However, whilst the United States suffered through losses of around 1.5%, gold and the heavily-criticised cryptocurrency, Bitcoin, thrived.
Gold prices have reached six-year highs, reaching almost $1,500 (€1,341.15) for every ounce (31 grams), with the precious metal miner, Fresnillo, being one of the few gainers on the FTSE 100.
Naeem Aslam, the chief market analyst at think Markets, also hinted towards a rise in Bitcoin’s value, stating that it “is highly likely that Bitcoin could easily top this year’s high of $14,000 (€12,517.40).”
All of this comes after Trump decided to impose tariffs on Chinese imports on Thursday, mainly 10% tariffs on the $300 billion (€268.3 billion) Chinese imports that were not already covered by the charges.
Central banks in both the United States and China have stated that they will be introducing measures aimed at supporting their respective domestic economies.