new york:
Black Monday saw a dip in stock markets and oil prices as US President Donald Trump persisted with his tariffs amid recession fears.
A wave of selling swept across global trading floors following last week’s sudden downturn. Trump urged Americans to be “strong, brave, patient” just before New York’s stock market dropped by over three percent.
Hong Kong experienced a staggering 13.2% drop, marking its worst day in nearly three decades.
Trillions of dollars have been erased from total stock market valuations in a recent session.
Taipei’s stocks hit a grim record on Monday with a 9.7% fall, while Tokyo ended nearly 8% lower.
Frankfurt managed to reduce its losses to about 4.6% in afternoon trading, recovering from an early drop of 10%.
After a steep plunge last week, Bitcoin also declined.
“The global equity market massacre continues,” remarked Thomas Matthews, head of market capital economics for the Asia-Pacific region.
He noted that Trump might still reconsider his tariffs.
“However, if he doesn’t, the stock situation could worsen significantly.”
A “baseline” tariff of 10% on imported goods worldwide started on Saturday.
Many nations will face increased duties beginning Wednesday, which includes a 34% tax on Chinese products and 20% on EU goods.
Last week, Beijing announced a 34% tariff on US imports, scheduled to take effect on Thursday.
Canada filed a WTO complaint on Monday regarding U.S. automatic rates.
The EU mentioned that Tokyo agreed to additional discussions with Washington, but both sides offered to eliminate tariffs on cars and other industrial goods.
– Bitter medicine –
I hope the US President will reconsider his strategies in light of the upheaval. He was distraught on Sunday when he said he would refrain from trading with other nations until the trade deficit was addressed.
“Sometimes, you need to take medicine to remedy a problem,” he said regarding the turmoil that erased trillions from corporate valuations affecting many Americans’ retirement savings.
On Monday, Trump reassured Americans, “Stay strong! Don’t be foolish!… Strength, bravery, patience, greatness is ahead!”
JPMorgan Chase CEO Jamie Dimon alerted shareholders that Trump’s extensive tariffs “are likely to drive inflation higher.”
“It remains uncertain whether the tariff strategy will trigger a recession, but it is sure to slow growth,” Dimon concluded, adding that “recent tariffs are expected to escalate inflation.”
With the release of its first quarter revenue reports, the market may see updated projections from companies that could diminish sentiment further.
Monday experienced rampant selling, affecting all sectors.
Tech firms, automakers, banks, casinos, and energy companies suffered as investors pulled out of riskier assets.
Concerns about future energy demand resulted in oil prices dropping by 3%, following a nearly 7% decrease on Friday.
Both major contracts have now hit their lowest levels since 2021.
The Kremlin stated it is monitoring the sharp fluctuations in oil prices, which are critical to Russia’s economy.
-1330 Key figure from around GMT –
New York – Dow: 37,166.35 points down 3.0%
New York-S&P 500: 4,908.53 down 3.3%
New York – Nasdaq Composite: 14,978.03 down 3.9%
London-FTSE 100: 7,698.31 down 4.4%
Paris-CAC 40: 6,931.42 down 4.7%
Frankfurt-DAX: 19,687.87 down 4.6%
Tokyo-Nikkei225: 31,136.58 down 7.8% (close)
Hong Kong – Hang Sen Index: 19,828.30 down 13.2% (close)
Shanghai – Composite: 3,096.58 down 7.3% (close)
West Texas Intermediate: $60.27 per barrel.
Brent North Sea Crude: $63.85 per barrel.
Euro/Dollar: Increases from 1.0962 on Friday to $1.0966
Pounds/Dollars: Moves from $1.2893 to $1.2804
Dollar/yen: Decreases from 146.98 yen to 146.67 yen
Euro/Pound: Changes from 85.01p to 85.64p
(Except for the headline, this article has not been altered by NDTV staff and is published via Syndicate Feed.)
