Global Stock Markets Plummet Amid US Trade War Fears
Asian, European, and American stock markets experienced a brutal downturn on Monday, April 7, amidst a climate of global anxiety sparked by the introduction of new US tariffs. In Tokyo, the Nikkei index plummeted by 7.8%, while in Seoul, the Kospi index fell by 5.6%. Hong Kong's index suffered a staggering 12% drop, a level not seen in over 16 years.
In Europe, Frankfurt briefly plummeted by 10% at the opening, followed by Paris with a 6.1% decline and London with a 5.8% drop.
These massive losses come on the heels of the US decision to impose a 10% tax on imported products, effective Saturday, April 5.
Australia, also affected, saw its stock market decline by 4.2%. Treasurer Jim Chalmers condemned the US's "bad decisions" but expressed confidence in the country's ability to absorb the shock.
In response, Beijing announced the introduction of 34% tariffs on American imports starting April 10, while assuring that China would remain a "safe haven for foreign investors".
Finally, on Wall Street, indicators predict another day of losses, following the Dow Jones and S&P 500 indices' wipeout of nearly $6 trillion in market capitalization over the past two days.
