Global trade tensions escalate as China retaliates against US tariffs, sparking fears of a trade war and potential recession. The move has sent shockwaves through global markets, with stocks plummeting and oil prices diving.
The global market is facing intense pressure following China‘s retaliation against US tariffs on Monday. The move has sparked fears of a trade war and a potential recession.
Stock Market Performance
-
S&P 500: Down 0.4%
-
Dow Jones Industrial Average: Down 0.7%
-
Nasdaq: Up 0.18% (early morning gains)
European Markets
-
FTSE 100: Down 3.7%
-
Euro Stoxx 600: Down 3.6%
Bond Market
-
US 10-year Treasury Yield: Up 4.45%
-
UK 30-year Bond Yield: Soared to 5.649% (highest level since 1998)
Oil Prices
-
Brent Crude Oil Futures: Plunged to $58.47 (first time below $60 since February 2021)
-
West Texas Intermediate: Down 5.4%
Market Reaction
Retail investors are flocking to safe-haven assets such as gold and gilts, with net purchases of gold exchange-traded funds surging by 157% last week.
A market reaction refers to the collective response of investors, traders, and other market participants to a particular event, news, or development.
This can include changes in stock prices, trading volumes, and market sentiment.
Market reactions are often driven by factors such as economic indicators, company earnings reports, and geopolitical events.
According to a study by the Securities Industry and Financial Markets Association (SIFMA), 75% of investors rely on market data to inform their investment decisions.
Understanding market reactions is crucial for investors seeking to navigate volatile markets.
Investors are advised to keep a long-term perspective and consider drip-feeding investments during periods of market volatility.
