In his first day in office the President of the United States, Donald Trump, started his day taking important decisions regarding the economy of the country, which immediately reflected in stock indexes and stock exchanges of the world, especially in Wall Street, that is one of the greatest worldwide references for international indexes.
So far the consequences of the actions taken by the president to worldwide economies have been speculations, however, up until now statistics reveal that losses could reflect mostly for Americans.
The trans-Pacific Partnership (TPP) is a treaty that had intended to shape a large scale economic block, among the participating countries we can name three Latin American countries, Chile, Mexico and Peru. The United States and Japan are the most prominent, as both represented the 79 percent of the gross domestic product (GDP) in the TPP.
With the exit of the US from the TPP, due to the order of the new president to authorize the withdrawal from the agreement, it could be seen as the fall of the TPP altogether, nevertheless, there are still other opinions and statistics which indicate that this isn’t necessarily true.
After the exit of the United States, Wall Street showed heavy losses due to investors betting on international actions and to the acquisition of gold, which represents “safe bets”, before a possible fall of the stock-market and American indexes.
The remaining countries in the TPP could choose to take shelter in the Asian giant, one of the greater exporter of the world, in order to continue with the Trans-Pacific Partnership.
Although undoubtedly to some specialists, the exit of the United States represents something that threatens its existence, some other experts state that, eventually, countries will find ways to ‘solve’ issues among themselves, which in the long run, would make the US dispensable .
The troublesome outlook for the U.S. stock indexes is that Donald Trump actions are aimed at generating greater profits and benefits for his country above any other, believing that the American nation is absolutely essential for international economy, however, it is proven that ‘no one is indispensable’ and the actions of the president could be the key to generate an ‘economic isolation’ for that country.
Investors have started looking for safe markets such as gold and bonds, measures that reflect fear and insecurity towards the measures taken by Trump and hope to find safe or at least stable investments.
Such actions have led to losses and setbacks of the American indexes. In the case of Dow Jones, it lost 0.33 percent, falling to 19.762,59 points. In the case of S&P 500, it fell 0.43 percent, to 2256,25. While Nasdaq Composite showed losses of 0.17 percent, landing on 5049,63 units.