The market has raised its prospects for the World Trade War, which will reduce the number of basic rates for up to four times this year.
President Donald Trump says that it will impose 25 % of Mexico, 25 % in Canada, and 10 % to China on weekends. It is uncertain about when these sanctions will begin.
The newly selected president has also indicated that the UK and the European Union may be in accordance with tariffs due to trade unequal balance.
As a result, the stock market around the world shakes, and I was worried that this movement would increase the price of consumer goods and slow down international trade.
Before opening this morning, German Bank's strategist Jim Reed stated:
“I'm shocked, but everything I did was followed. What he is saying exactly is what he has been trying to do since November.
“However, the market refuses to take the threat seriously and has completely increased the risk, so it leaves the weekend news as a harsh shock.”
In London, FTSE 100 decreased by 1.25 %, 1.05 % lower or 90.85 points in 8,583.11 in late afternoon.
This increased the possibility that Ingrand Bank would reduce interest rates several times in the fear of global trade disputes.
Money markets are currently set at 80 Basis points reduced to bank rates by the end of this year.
In other words, three 0.25 % cuts have the fourth possibility, so they are completely priced.
This increases from the cut of 75 Basis points expected last Friday.
In the anemia, most traders have firmly bet on the monetary policy committee's England Bank rate setters that there are almost no options except to reduce basic rates from 4.75 % on Thursday.
Both Goldman Sachs and German Bank predicts that the committee will vote 8 to 1 to decrease from 0.25 % to 4.50 %.
The current set of British economic data is pessimistic. The economy was reduced to October and September, and in November, which was promoted by pubs and restaurants, the construction industry was raised by 0.1 %.
Inflation is 2.5 %, exceeding the 2 % goal of the central bank.
Last month, Charlie Nun, the highest executive officer of the Lloyds Bank Group, said that it was hoping for three basic rates this year because it characterized Britain as “resilience.”
Goldman Sachs has long been predicted by Ingrand Bank for four times the bank fee is reduced four times to keep moving the British economy.
The consensus view this year was that the British Central Bank would lower the basic charge twice this year.