The turmoil in global markets due to tariff disputes continues. President Trump has not backed down from customs duties. Record levels of sales were seen in stocks, and cryptocurrencies plunged. Indexes in the US opened the day with drops of over 4%. Losses accelerated in oil and natural gas prices. Expectations of a quick interest rate cut from the Fed by investors increased.

The earthquake effect due to the increasing concerns about trade wars is being felt in global markets. President Donald Trump stated that investors need to accept the effects of tariffs, and the US will not reach an agreement with China until the issue of the trade deficit is resolved. China noted that the effect of the retaliation against the increased US tariffs was clearly visible in the markets. Trade ministers of the European Union will meet in Luxembourg today to discuss how they will react to Trump’s tariff package.

Concerns about tension in trade expedited exits from risky assets. Investors thought that Trump might rethink the increase in customs duties due to the trillions of dollars in losses in asset prices and the potential harm to the economy. Trump stated regarding the decline in the markets, “I don’t want anything to go wrong, but sometimes you need medicine to fix something.” On the other hand, reactions from the American business sector to Trump increased. Billionaire investor Bill Ackman argued that Trump’s tariff strategy was leading the country to an economic nuclear winter. Ackman indicated that voters did not vote for such a scenario.

US STOCK MARKET PLUNGES SHARPLY

US stock markets started the week with a sharp decline. The Dow Jones index opened with a 3.31% drop, the Nasdaq with 4%, and the S&P 500 index with a 3.72% drop. After the opening, losses intensified even further. The S&P 500 index fell by 20% from its recent high, signaling a bear market.

RECORD LOSSES IN ASIAN STOCK MARKETS

In Japan, the Nikkei 225 index closed at 31,187 points with a 7.7% drop, in South Korea, the Kospi index closed at 2,328 points with a 5.6% decrease, and in China, the Shanghai composite index closed at 3,096 points with a 7.3% drop. The Hang Seng index in Hong Kong recorded a decline of 12.7%, closing at 19,960 points, while in India, the Sensex index traded at 72,152 points with a 4.3% decrease.

Losses reached 10% in the Australian market. The MSCI index tracking Asia-Pacific markets, excluding Japan, fell by 7.68%. The index recorded its most severe daily drop in 16 years. EARTHQUAKE IN EUROPEAN STOCK MARKETS Losses deepened in European stock markets and US futures. The Stoxx Europe 600 index traded at 465 points with a 6.4% drop, the DAX 40 index in Germany with a 7.5% decrease at 19,142 points, and the FTSE 100 index in the UK with a 4.9% drop at 7,658 points. In Italy, the FTSE MIB 30 index traded at 32,135 points with a 7.3% drop, in Spain, the IBEX 35 index at 11,702 points with a 5.9% decrease, and in France, the CAC 40 index at 6,825 points with a 6.2% drop. In the US, the Dow Jones Industrial Average futures dropped by 4.3%, the S&P 500 by 5%, and the Nasdaq 100 by 5.5%. CRYPTOCURRENCIES COLLAPSED Cryptocurrencies, the most volatile assets in the markets, also saw sharp declines. According to Coinmarketcap data, the value of the global cryptocurrency market, including Bitcoin, decreased by about 10.58% in 24 hours, falling to $2.39 trillion.

Bitcoin fell by over 10% in the last 24 hours, dropping below $75,000. Ethereum’s price also dropped by approximately 22%, reaching $1,421. OIL AND GAS PRICES HIT BOTTOM In Europe, at the Netherlands-based virtual natural gas trading point with the highest depth, TTF, the price per megawatt-hour of gas contracts for May fell by about 4% to open at €35. Gas prices fell by 8% after the opening, dropping to €33.5. Thus, gas prices in Europe hit the lowest level seen since May 2024. Brent crude fell to $63, reaching the lowest level in four years. EXPECTATIONS OF INTEREST RATE CUTS INCREASE Investors price in an increased risk of recession due to customs duties and believe that the US Federal Reserve Bank (Fed) will cut interest rates from May onwards. According to futures, five interest rate cuts of 25 basis points are priced in the US for this year, while the yield of Treasury bonds and the dollar are declining. Following the shift of investors towards assets considered safe havens, the yield on US Treasury bonds declined by 8 basis points to 3.916%.