Global Stock Market Crisis

Overview

• President Donald Trump's tariffs on global trade partners have triggered a massive sell-off in global stock markets.
• Markets across the world are crashing, with major indices experiencing steep declines.

Impact on Global Markets

India

• Sensex dropped over 2,200 points.
• Nifty fell over 3%, going below the 22,200 mark.
• Investors lost over 13 lakh crore rupees (~$150 billion) in one day.
• Every sector was significantly impacted.

Asia

• Tokyo's Nikkei dropped over 8%.
• Taiwan's TAIEX fell nearly 10%.
• Circuit breakers were activated in Japan and Taiwan to prevent panic selling.
• Hong Kong's Hang Seng saw its steepest decline since 1997, dropping 13%.

China's Response

• China's sovereign wealth fund intervened by purchasing shares to stabilize the market.

Trump's Tariffs

• Trump's tariffs target both allies and adversaries, with Asia being most affected due to its manufacturing and export reliance on the US.
• Tariff rates include:
  • Japan & South Korea: 26%
  • India: 26%
  • Thailand: 36%
  • Vietnam: 46%
  • Cambodia: 49%
  • China: 54%

Economic Predictions

• US investors and top banks like Goldman Sachs and JP Morgan predict an increased likelihood of a recession.
  • Goldman Sachs: 45% chance of recession.
  • JP Morgan: 60% chance of recession.

Investor Concerns

• Bill Ackman, a hedge fund manager, suggests a 90-day pause on tariffs to renegotiate trade deals.
• Jamie Dimon, JP Morgan Chairman, warns that tariffs could increase prices for Americans.

Trump's Position

• Trump and his administration view tariffs as a necessary "medicine" for long-term economic prosperity.
• They dismiss recession concerns.

Market Reactions

• US stocks have lost over $6 trillion in market value since Trump's tariff announcements.
• European markets mirrored Asian losses with significant declines in Germany, France, and the UK.

Conclusion

• The market's need for stability is unmet due to ongoing tariff uncertainties.
• There is fear that if current policies continue, the worst economic impacts are yet to come.