Global stocks fall as Trump is not going to soften his customs policy - FT
Kyiv • UNN
US stock index futures and Asian stocks fell sharply after Trump announced he would maintain large-scale tariffs. The fall occurred amid fears of a global economic recession.
Futures on US stock indices and Asian stocks fell sharply at the start of trading after the administration of US President Donald Trump announced that large-scale tariffs would be maintained, despite concerns that they could trigger a global economic recession. This is reported by UNN with reference to the Financial Times.
Details
Contracts for "blue chips" S&P 500 fell by 2.8%, and contracts for high-tech Nasdaq 100 - by 3.4%. Chinese markets also fell: Hong Kong's Hang Seng index fell by more than 10%, and the mainland CSI 300 index - by 5.8%.
In Japan, the Topix index fell by 6.5%, falling by 9.6%, and the Nikkei 225 fell by 6.3%. The Australian S&P/ASX 200 and the Korean Kospi also fell by more than 4%.
The fall occurred after more than $5 trillion was wiped from the S&P 500 on Thursday and Friday at the end of the worst week since the start of the coronavirus pandemic in 2020. The more than 10 percent drop in the S&P 500 during Thursday and Friday is only the fourth time in the last 85 years that the index has fallen so quickly.
Trump's attempt to overturn the global trading order by imposing huge duties on American imports has fueled concerns about the trajectory of the global economy. On Friday, China announced the introduction of duties in response to 34% tariffs imposed by the US.
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Commodities also suffered significant losses: West Texas Intermediate, the US benchmark for oil prices, fell 3.4% to $59.80 a barrel. The international benchmark Brent crude fell 3.4% to $63.35.
Copper on the LME, which is widely regarded as a growth indicator due to its industrial use, fell in price by more than 7% to $8,690 per ton.
Bitcoin fell 0.8% to $78,198 per token. The US dollar fell 0.3% against a basket of currencies of its largest trading partners, and the Japanese yen rose 0.8% to 145.6 yen per dollar. The freely traded offshore Chinese yuan fell 0.2% to 7.31 yuan per dollar.
Japanese Prime Minister Shigeru Ishiba said he would visit the United States to meet with Trump as soon as possible, but in the meantime the country "should prepare a package of measures on what Japan can do."
At one point, Topix fell by 9.6 percent, with many stocks not trading due to oversaturation with sell orders.
Some asset managers are frozen and are not taking any action, others have switched to cash and are waiting for everything to resolve. There are expectations that a rebound may occur, but no one knows exactly when, down to the hour, whether it will be a successful bet
Toyota shares fell nearly 7% and Nintendo shares fell 9.6% after news that the company had postponed pre-orders for its new Switch 2 console in the US following the announcement of tariffs. SoftBank shares fell 12.7%, and MUFG, one of Japan's largest banks, fell 15%.
Investors are closing many positions in light of volatility. The fall is a reflection of some easing of positions, especially foreign positions in Japanese banks and financial institutions
On Sunday, Trump showed no signs that he would back down from his customs plan.
We have a huge financial deficit with China, the European Union and many others. The only way to solve this problem is tariffs, which are now bringing tens of billions of dollars into the US. They are already in effect, and it's a great thing to watch
Responding later to a question about the market fall, Trump told reporters that "sometimes you have to take medicine to fix something."
Additions
US Secretary of State Marco Rubio admitted that "markets are collapsing" after President Trump's administration imposed large-scale global tariffs, but said they would readjust.
"Businesses around the world, including trade and global trade, they just need to know what the rules are. When they learn what the rules are, they will adapt to those rules," Rubio said
