07-04-25, 09:22
|
#6
|
Join Date: Feb 2011
Posts: 50,527
Thanks: 28,767
Thanked 14,428 Times in 10,234 Posts
|
DUMB TRUMP Says 'Take Medicine' as Global Markets Plunge Even More
Markets Plunge as Tariffs Create Global Shockwaves - Hong Kong Falls 13.22%
European And Asia Stock Markets Plunge as Trumps Tariffs Cause HUGE Slump
The global fallout from Trumps tariffs on US imports goes on, with stock markets in Asia plummeting overnight. But he has defended his policy, arguing that 'Sometimes You Have to Take Medicine to Fix Something'
BBC 7 APR 2025
Defiant Trump vows to stay course on tariffs - BUT The fallout will be messy for Him and the US
Markets Plunge Over Tariffs
Hong Kong exchange closes after worst day in 28 years
Hong Kong stocks the Hang Seng Index has now ended 13.22% down. It has been dropping across the day since the market opened.
This is the biggest drop since the 1997 Asian financial crisis
Its not just share prices - commodities like oil are falling too
While all the focus has been on the dramatic stock market falls, the prices of commodities such as oil and copper have also been sinking.
Why are they falling? Well demand for things like oil and copper tends to increase when the global economy is doing well, as more oil is needed to provide energy and copper is a key component for many industries.
However, the worry is now that the US tariffs will slow global economic growth, or maybe even trigger a recession. This will reduce demand for these commodities, hence the recent fall in their prices.
The price of benchmark Brent crude oil fell about 10% last week, and it?s dropped a further 4% this morning to $63.04 a barrel. The price of copper fell about 6% in early trade on Monday before recovering some ground.
While all the focus has been on the dramatic stock market falls, the prices of commodities such as oil and copper have also been sinking.
In Asia, Americas friends are suffering almost as much as China
China may have been the key target of Donald Trumps latest tariffs, but judging from the market reaction, Americas friends such as Japan, South Korea and Australia are suffering almost as badly as Beijing.
Since last Thursday, shares in carmakers such as Toyota, Honda and Nissan have been falling sharply due to the 25% levy on all imported cars into the US.
Japans banking shares are also hit, as economists say it is highly unlikely for the country?s central bank to be able to raise the cost of borrowing due to the significant impact on Asias second biggest economy.
Prime Minister Shigeru Ishiba has repeatedly emphasised that Japan is the biggest foreign direct investor in the US and therefore should be able to enjoy an exemption from some of the tariffs.
But so far, Tokyos negotiations with Washington have not been successful.
As we witness what many are describing as a bloodbath in world stock markets, there are some particularly gory casualties.
Shares in UK headquartered but internationally exposed banks have seen some of the sharpest falls of all.
HSBC and Standard Chartered, which are at the intersection of trade between east and west, have been hammered with shares in both down over 10% at one time overnight before recovering some of their losses when London markets opened.
Banks like Lloyds and NatWest are often seen as proxies for the prospects for the UK economy and are also down over 5% this morning signalling the increasing chances the economic shock unveiled by Donald Trump could usher in a recession.
Meanwhile, key commodities like copper and oil are also flashing red on fears for a global economic slowdown.
More than one market commentator tells me that Donald Trump is having his Liz Truss moment when markets lose confidence in the direction and competence of economic policy makers like him.
When that applies to the worlds biggest economy and biggest customer on the planet, the fear is universal....
GLUCK GLUCK, GLUCK GLUCK, & DUCK Whilst 'DON' Trump The Destroyer is About...
Trump Hailed as 'Destroyer of America' on Russian State TV
|
|
|