Aussie share market loses $57 billion in biggest drop in eight months

Australian actions closed with a loss of $ 56.6 billion today, the largest in eight months, after the main falls in the world markets caused by the radical tariffs of the president of the United States, Donald Trump.

The S&P/ASX 200 index fell 2.4 percent, or in 191.9 points, to 7667.8 points by the bell.

Most of the industry sectors, the essential elements of the bars consumer, the main registered falls. The actions in the energy companies were affected especially hard, collapsing almost 8 percent amid concerns about an increase in oil supply.

Trump’s new radical tariffs on US imports have shocked governments and investors worldwide, quickly stimulating both threats of retaliation and demand negotiation as industries rushed and global actions fell.

Australian exports to the US are now subject to a 10 percent rate, substantially lower than other nations and commercial blocks.

Only about 4 percent of the exported Australian goods go to the US, leaving the vast majority without impacting.

Trump imposed a 34 percent tax on China’s assets in addition to an earlier rate of 20 percent, as well as a 20 percent rate for the European Union, 24 percent in Japan and 25 percent in South Korea.

China is the largest commercial partner of Australia, and a reduction in demand there would harm our exporters.

The rates round shook the financial markets, with the US standard and poors of 500 of 3.7 percent in the afternoon trade.

The Stoxx Europe 600 index fell 2.7 percent and a 2.8 percent drop at Tokyo’s reference point led the losses in Asia. Oil prices sank more than US2 per barrel.

Now it seems that a complete global commercial war will unleash the EU. South Korea, Mexico and India promised retaliation measures on US goods.

Analysts asked the superlatives at a step that interrupts the global commercial order and revokes decades of efforts to reduce rates through commercial conversations and free trade agreements.

“The magnitude of the deployment, both on scale and speed, was not only aggressive; it was a macro interruption of the entire trotottle,” said Stephen Innes of Spi Asset Management in a comment.

Jim Reid, from Deutsche Bank, described him as “radical policies reorganization” and said that the United States now had an average rate from 25 % to 30 %, the “worst end of expectations” and the highest since the beginning of the 20th century.