ISLAMABAD: Stock markets and oil prices collapsed further on a black Monday following US President Donald Trump’s sweeping tariff plans and his threat to increase 50 percent tariffs on China by Tuesday (today) if Beijing did not withdraw retaliatory measures of imposing 34 percent tariff on US, increasing trade war concerns.
In a big blow to the Indian stock market, foreign investors withdrew Indian Rs103.55 billion from the country’s equity markets in the last four trading sessions this month due to the sweeping tariffs imposed by the US on most nations, including India.
The outflow occurred after a net investment of Indian Rs30,927 crore in the six trading sessions from March 21 to March 28. This infusion helped reduce the overall outflow for March to Rs3,973 crore, according to the data from the depositories.
The MSCI Asia-Pacific index, which reflects the market capitalization of its member countries, on Monday fell by 6.8%, which was the worst result since 2011.
In Europe, the German DAX index fell by 10% in a day, the French CAC and the British FTSE fell by 3%. And the Stoxx Europe 600 index, which reflects the quotes of the 600 largest companies in the region, lost 5.8%.
The Russian market did not stay away from Europe and Asia either. On Monday, the Moscow Exchange index fell by 3%, falling below 2,700 points for the first time since the end of December.
The American market is also in the red. At the opening of trading on April 7 (at 16:00 Moscow time), the S&P 500 and Dow Jones indices lost 3.5% (-13% and -12% in five days, respectively), the Nasdaq Composite — 4% (-9% in five days).
Hong Kong’s Hang Seng index led the Asian stock plunge, plummeting more than 13 per cent on its worst day since the 1997 Asian financial crisis. European stocks also opened sharply in the red.
It’s been a day of worldwide market turmoil as Trump stood firm over his tariffs despite fears of a recession and even threatened an additional 50 per cent tariff on China. Bitcoin tumbled while the dollar was mixed after sharp losses last week.
In Asia, Japan’s Nikkei 225 index sank 2.77% and Hong Kong’s benchmark Hang Seng index fell 1.52%. AFP adds: Beijing has issued countermeasures after Trump announced another sharp tariff hike on goods from the world´s second biggest economy last week.
A fresh 34 percent levy on the country´s products is due to kick in Wednesday (today), bringing the added rate this year to 54 percent. It is not immediately clear how Trump´s new threat factors into this calculation.
China´s response included export controls on rare earth elements, and Beijing plans for its own 34 percent tariff on US goods, stacking atop existing Chinese levies set to begin April 10.
Trump took aim at Beijing´s economic practices on social media Monday, criticizing its “non-monetary tariffs” and “illegal subsidization of companies.” He added, “All talks with China concerning their requested meetings with us will be terminated.” But “negotiations with other countries, which have also requested meetings, will begin taking place immediately,” Trump wrote on his Truth Social platform.
Differences on President Donald Trump´s tariff onslaught were on display on Monday as the EU sought a show of unity on the pushback.
Backed by Germany and Austria, Paris has been pushing for the EU to consider targeting US services, including digital -- drawing fire from Ireland which relies heavily on US investment, particularly in the pharmaceutical and tech sectors.
Canada has launched a complaint with the World Trade Organization over the steep tariff imposed on car imports by US President Donald Trump, the global trade body said Monday.
Japan´s Prime Minister Shigeru Ishiba said Monday he had held a call with Donald Trump in which they agreed to more talks on the US president´s latest tariffs, which sparked a global selloff and fears of a recession.
Israeli Prime Minister Benjamin Netanyahu meets Donald Trump at the White House on Monday, becoming the first foreign leader to personally plead for a reprieve from stinging US tariffs that have shaken the world.