Recession fears fuel sell-off in global stocks

DW (English)

Stock markets around the world have extended their losses, as investors fear an economic downturn as a result of the massive tariffs imposed by the Trump administration.

Transcript

00:00DAX, Germany's main stock index, fell by 10 percent on Monday.

00:05The largest 40 firms of the country sit on this index.

00:09Investors fear that a global economic slump is around the corner as a direct result of

00:14U.S. tariffs.

00:16Analysts are worried.

00:18The panic may be justified because Donald Trump has completely altered the current global

00:23trade order.

00:25And I think it's only a reaction and less reasons to panic as compared to what we imagined.

00:32Shares of banks are particularly vulnerable.

00:35It's likely that central banks all over the world will further cut interest rates to counter

00:40the crisis.

00:41The Tokyo Stock Exchange, the Nikkei index, closed with 7.8 percent loss.

00:47Over in Hong Kong, the Hang Seng index fell by as much as 13.2 percent.

00:52This is Hang Seng's biggest loss in the last 28 years.

00:57Fears of an escalating trade war between Washington and Beijing are also embedded in this market

01:02reaction.

01:03Retaliatory tariffs from China on U.S. imports to the tune of 34 percent will come into effect

01:09on April 10.

01:11For the German and Asian markets, the signs are as negative as they are for the U.S.

01:19Nevertheless, we have other ways of getting out of this.

01:23And the European Union is strong and quite large, and so is Asia.

01:28So we have options and opportunities to trade with other regions.

01:33Fears of a global slump are causing the price of oil to falter.

01:37On Monday, a barrel of Brent crude from the North Sea cost 63.35 dollars, the lowest level

01:45since April 2021.

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