Markets on the Dive: Trump Tariffs Spill Over Globally
The London Stock Exchange opened the week bruised, falling a steep 6.1% on Monday, while the FTSE 100 shed 3%—a drop of 241.88 points.
Trump’s trade war has turned the trading screens red across continents, and the U.S. President has been brushing it off like a little cold medicine.
UK Indexes All in the Red
- FTSE 250 – down 5% at the open.
- FTSE 100 previously hit a low of 8,054 – a 10% fall of 800 points.
The pound ticked up 0.2% against the dollar, and the euro nudged up 0.4% (with the current rate at £1 = $1.292 and €1 = $1.10).
Asian Markets in Free Fall
- Hong Kong’s Hang Seng plunged almost 13%.
- China’s CSI 300 slid 8%.
Europe’s Deep Dive
The STOXX 600 dropped 5.8%, the steepest decline since the pandemic, and the German DAX was down by a heart‑stopping 6.6%, leaving Deutsche Bank with a 10% loss.
Analysts at Deutsche Bank warn that markets still feel the knock from last Wednesday’s U.S. reciprocal tariffs, with investors pricing in an increased chance of a U.S. recession. In fact, S&P 500 futures are currently down 3.55% overnight, potentially pushing the index into bear‑market territory today—over 20% below its mid‑February peak.
What’s the Big Question?
Tariffs loom large on the agenda, but the real suspense comes from how other nations might retaliate. That’s what the markets are watching, especially after China’s counterattack, which sparked the fresh sell‑off on Friday.
Market Analyst Insights
IG’s Chris Beauchamp says, “More losses are likely in Europe and U.S. futures. The rush to exit at any price hasn’t calmed yet.”
He notes calls for an emergency rate cut are growing, but Powell’s speech on Friday confirmed that investors are flying solo for now. “After China’s retaliation, we’re waiting to see how other major U.S. trading partners respond.”
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