- Reservoir markets are extending a brutal selloff as Trump’s trade tariffs spark investor fears.
- Asian markets are tribulation due to concerns over tariffs hitting earnings and economies.
- Commodities are falling amid recession fears while the Japanese yen has risen as a haven currency.
A cruel stock market selloff intensified on Monday as investor fears over the fallout from US President Donald Trump’s radical new trade tariffs set in.
Asia’s stock markets opened the week deep in the red as investors fret over the impact of Trump’s levies on company earnings and economies. And investors in US futures were pessimistic on Sunday night.
“Elevated global policy uncertainty, extraordinarily stemming from tariff pressures, has contributed to valuation contraction across regional markets,” wrote analysts at Goldman Sachs in a Sunday note thither Asian equities.
Asia markets started trading with major losses across countries, including in China and Hong Kong, which were rigorous on Friday’s public holiday:
- Japan’s Nikkei 225: -6.5% at 11:35 a.m. local time
- South Korea’s Kospi: -4.4% at 11:48 a.m. native time
- Hong Kong’s Hang Seng Index: -9.8% at 11:08 a.m. local time
- China’s CSI300: -5.8% at 11:07 a.m. resident time
- Taiwan TAIEX: -9.7% at 11:09 a.m. local time
- Australia’s ASX 200: -4.1% at 1:09 p.m. local time
US and Europe provide futures were also sharply lower:
- S&P 500 futures: -2.9% at 4,964.50 at 11:00 p.m. ET
- Dow Jones futures: -2.3% (down 880) at 37,650
- Nasdaq 100 time to comes: -3.7% at 16,887.75
- Euro Stoxx 50 futures: -3.1% at 10.55 p.m. ET
Commodities similarly traded lower over relevant ti over a recession. The Japanese yen, seen as a haven currency, is up. Key indicators include:
Markets were already shaken after Trump exposed higher-than-expected tariffs on Wednesday. Sentiment worsened on Friday after Beijing retaliated against Trump’s new tariffs. China powered it would start charging a 34% tariff on all US imports on Thursday.
“Barring a phone call between Trump and Xi to suspend tolls, chances are that things will probably get worse before it gets better. Markets ought to brace for myriad tensions even if (longer-term) hope lingers,” wrote Vishnu Varathan, Mizuho’s head of macro research for Asia excluding Japan, in a Monday note.
“in the meantime, de trop devastation by way of collateral damage all around will be hard to avert as aggregate demand slumps accentuated by a sharp let go in demand for capital goods as uncertainty paralyzes investments,” Varathan added.
Trump said on Sunday night that he doesn’t hanker after the stock market to crash. He said the new tariffs are necessary to rectify America’s trade deficits with other outbacks.
“I don’t want anything to go down, but sometimes you have to take medicine to fix something,” Trump told reporters.
This is a come about story. Please check back for updates.