Bloomberg Daybreak: Europe Edition
Tariffs Fuel Market Meltdown, Recession 'Expected', Trump Open To Trade Deals
Apr 4, 2025
Asian shares see a steep decline, marking a two-month low, as investors flee to safer assets amid tariff uncertainties. The implications of Trump's trade measures are causing global market jitters, with economists warning of recession risks. French President Macron responds to the U.S. tariffs by urging EU businesses to reconsider spending in America. Additionally, talks emerge around reducing tariffs with the UK, highlighting potential negotiation pathways amidst rising global trade tensions.
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Quick takeaways
- The imposition of aggressive tariffs by the U.S. has triggered a global stock market sell-off, escalating volatility and investor risk aversion.
- Economic analysts warn that these tariffs increase the risk of recession, with most predicting downturn pressures for the coming year.
Deep dives
Market Turmoil Due to Tariffs
The recent imposition of tariffs by the U.S. has led to a significant global stock market sell-off, with the S&P 500 experiencing its largest drop since 2020, shedding approximately 5%. This aggressive tariff approach has caused investors to flee from risk assets, pushing many towards safe havens, and inflating the cost of capital for businesses. The aftermath has seen over $2.5 trillion wiped off the value of U.S. stocks, setting a tone of increased volatility and uncertainty in the markets. Analysts warn this could trigger a crisis-like scenario, with notable voices advising against buying into the dip amidst fears of further economic decline.
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