London Stock Exchange fell by 6.1% on Monday morning and the FTSE 100 dropped 3% by 241.88 points.
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Donald Trump’s tariff’s war has hit global stock markets sending the trading screens red and the US President likened this is “medicine.”
The FTSE 250 lost 5% as the market opened and last week the FTSE 100 closed at it’s lowest this year at 8,054, which was a fall of 10% to 800 points.
The pound rose against the US dollar by 0.2% and the Euro was up by 0.4% against the greenback, which now stands at £1 equals $1.292 and the €1 is $1.10.
Asian markets was severely hit as Hong Kong’s Hang Seng plummeted by almost 13% and China’s CSI 300 dropped by 8%.
Europe’s STOXX 600 dropped sharply by 5.8% which is the sharpest fall since the pandemic and the German Dax was down by 6.6% which left Deutsche Bank losing 10%.
Analysts at Deutsche Bank warned, “markets are still reeling from the announcement of US reciprocal tariffs last Wednesday, which has seen investors price in a growing probability of a US recession.
“In fact, S&P 500 futures are currently down another 3.55% overnight, which, if realised, would see the index fall into bear market territory today, down more than 20% from its closing peak in mid-February.
“So the scale of the sell-off is now coming into line with some of the most aggressive drawdowns of the last decade. Looking to the week ahead, tariffs are clearly set to dominate the agenda, but the big question is also how other countries might retaliate.
“That’s something markets are watching for closely, as it was China’s retaliation that led to the fresh sell-off on Friday.”
IG chief market analyst Chris Beauchamp said: “Further losses are on the cards in Europe and in US futures, suggesting the rush to get out at any price has not yet abated.
“The wave of selling since Wednesday has seen calls grow for an emergency rate cut, but Powell’s speech on Friday confirms that investors are on their own for the time being.
“After China’s retaliation on Friday, we are now waiting to see how other major trading partners of the US respond.”
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