Maroc - RAWSTORY.COM - Raw Story - 20/Jan 18:19

Markets meet Trump's anniversary with dramatic plunge

The stock market took a dive on the one-year anniversary of President Donald Trump's return to the White House as investors braced for a global clash over his threats against Greenland.The Dow Jones Industrial Average plummeted by more than 600 points, while the S&P 500 fell by 1.5 percent and the Nasdaq Composite dropped by 1.8 percent, and U.S. bond prices staggered and the U.S. Dollar Index dropped nearly 1 percent under Trump's tariff threats against Europe, reported CNBC.“This is ‘sell America’ again within a much broader global risk off,” said Krishna Guha, head of global policy and central banking strategy at Evercore ISI, in a note to clients.The bond market shifted Tuesday following Trump's holiday weekend threats to impose 10 percent tariffs on eight European countries that have objected to his push to take control of Greenland, and representatives from all 27 members of the European Union gathered for an emergency meeting about the duties he said would start Feb. 1.“On the other side of trade, deficits, and trade wars, there are capital and capital wars,” Bridgewater Associates founder Ray Dalio told CNBC’s “Squawk Box” at the World Economic Forum in Davos, Switzerland. “If you take the conflicts, you can’t ignore the possibility of the capital wars. In other words, maybe there’s not the same inclination to buy ... U.S. debt and so on.”The drop in the U.S. Dollar Index, which measures the dollar against six foreign currencies, was the largest since his so-called Liberation Day rollout of sharply higher tariffs in April, although many of those have been rolled back.International markets continued to droop Tuesday after U.S. markets reopened following the Martin Luther King Jr. Day weekend."Investors are facing a rocky return to trading as the risk of a full-on US-EU trade war rattles nerves just as earnings season gets going," reported Yahoo Finance.