The global financial landscape faced significant turmoil as the repercussions of Donald Trump’s tariffs unfolded, wiping out a staggering $9.5 trillion from financial markets over three trading sessions.
Key points from the market meltdown include:
- Wall Street witnessed a 1,600-point decline at opening, accompanied by a surge in the VIX volatility index above 50 points.
- European markets, exemplified by the Stoxx 600 index, plummeted by 5.14%, while Asian markets encountered their worst session since the 2008 financial crisis.
- Safe-haven assets like U.S. government bonds and the Japanese yen strengthened as investors sought stability amidst the market chaos.
The Athens Stock Exchange mirrored the global downturn, signaling a technical correction with a decline exceeding 10% from its annual peak. Analysts caution that a further downturn of up to 20% could signify entry into a bear market.
In response to the market upheaval, investors anticipate a more aggressive monetary policy from the Federal Reserve, with expectations of five potential interest rate cuts of 0.25 percentage points each throughout 2025. Notably, futures contracts indicate a 40% likelihood of an emergency rate cut even before the May meeting, underscoring the mounting market tensions.
As uncertainties persist and market pressures escalate, the financial world braces for continued volatility and potential policy shifts to mitigate the impact of the ongoing trade turmoil.
Reference: Information sourced from reports on the impact of Trump’s tariffs on global financial markets and from https://in-cyprus.philenews.com
