Trade war with Trump as its hero 🌫🌫

#Trump's tariffs on 3 countries last weekend, and the threat of more tariffs on the European Union, are raising concerns and igniting markets around the world.. So what's happening?

📌 Proposed tariffs of 25% on Canada and Mexico and 10% on#Chinaare scheduled to go into effect on February 4 unless a last-minute deal is reached.

📌 These protectionist measures are paving the way for a wider trade war, with#Canadaannouncing a 25% counter-tariff,#Mexicopledging retaliatory measures,#Chinaissuing a statement pledging “counter-measures,” and the European Union saying it will “respond firmly.”

📌 The potential repercussions of the trade war sparked by the US President:

- The return of geopolitical tensions

- Represents headwinds to economic growth

- Fueling inflationary pressures that could push the Fed to keep interest rates high for longer

📌 How do markets react?

- Global stocks: Japan's Nikkei posts worst daily performance in 4 months amid losses in Asian markets, European stock markets open lower, Wall Street futures point to session in collective declines

- Arab stock markets: The red color was the prevailing trend, as the stock exchanges of #Dubai,#AbuDhabi,#Qatarand#SaudiArabia started today's session on Monday with a decline.

-#Oilmarkets: Prices received strong support from Trump's tariffs on crude imports from #Canada, with#Brentcrude currently trading up 1% and US West Texas Intermediate crude gaining more than 2%.

- Gold: Spot and futures losses continue to pull away from last week’s record highs as precious metal fails to capitalize on trade tensions, facing headwinds from a stronger dollar and interest rate expectations

- Cryptocurrencies: Losses dominate the crypto sector with pressure from the dollar, as#Bitcoinloses about 5% of its value

- Currencies of affected countries: The Canadian dollar fell to its lowest levels since 2003, the Mexican peso fell by about 2.5%, the Chinese yuan declined, and the euro lost 1.3% of its value against the dollar, which will benefit greatly from Trump's measures.

#اقتصاد_الشرق