The investors, who were waiting to see how the tariffs on Chinese goods which came into effect from September 1, 2019 onwards had mixed feelings about the global stock markets on Monday, where on one hand the markets in USA were closed due to the Labor Day holiday but the markets in other parts of the world ended slightly higher.
There was a rise in the broad Europe STOXX 600 as it rose to 380.55 points which was a 0.3% rise. The FTSE 100 in London saw a rise of 1.11% as it reached 7286.86 and the CAC 40 in France rose to 5487.66 rising by 0.2 %, the DAX in Germany was also higher by 0.1% to reach 11,949.22.
In the Asian markets there was a gain in the Shanghai Composite index by 1.3 % to reach 2924.11 while in Tokyo Nikkei 225 lost 0.4 % to reach 20,629.19. The Hang Seng in Hong Kong shed 0.4% to 25626.55. Kospi in Seoul ended at 1969.19 which is 1 point higher and the S&P – ASX 200 in Sydney was down at 6579.40 which is 0.4 % lower. Southeast Asian markets were down while markets in New Zealand and Taiwan rose.
On Sunday, a new round of tariffs had hit the markets when taxes in US were put on imports from China at 15%. There was retaliation from China when it also taxed a few goods imported from USA at 10 % and a few at 5%.
For a few consumer goods like clothing, footwear etc. the prices are expected to rise.
There will be further tariffs imposed on December 15th if both the countries fail to get to the table and reach an agreement.