- Penned by Frank "The Tank" Donovitz,
- Phil "The Bar" Goebel,
- and Yannick "The Scholar" Schuller
- 1 Min
- Trump issues warning to China, suggesting potential increase in tariffs by 50%.
Is this week shaking up to be a repeat of the past? Monday's market opening whispering tales of doom and gloom, with fears of an economic nosedive looming large. As the US imposes additional tariffs, global markets continue to see a freefall. The German stock index (DAX) took a heavy blow early on, dipping by around 10%, losing over 2,100 points to 18,489. A slight recovery followed, with the DAX once again reaching 19,000 points. Asian markets were in shambles earlier.
The cryptocurrency Bitcoin wasn't immune to the drama, plummeting below the 70,000-point mark.
DAX tumbles by 10% - No eggs in the peace-offering basket between the US and EU
There's no sign of détente in the trading war raging between the US and the European Union. US President Donald J. Trump has shown a keen interest in diplomatic ventures under certain circumstances. However, Trump's trade enforcer, Howard Lutnick, has previously hinted at the US's intention to keep the pressure on with high import tariffs on goods from nearly every nation.
In a twist of irony, the Chinese stock exchanges were closed on Friday due to a holiday. But on Monday, the Chinese CSI-300 index of key mainland stocks plummeted by 7.8% just before markets closed. The Hang Seng Index of China's Special Administrative Region, Hong Kong, crashed by a staggering 11.5%.
- Economic meltdown
- Cryptocurrency crash
- Stock market decline
[1] Retail's Black Friday[2] Black Monday
Enrichment Data:- "Panic Tuesday": While there is no historical reference to a specific "Panic Tuesday" in the stock market context like "Black Monday," it might be used informally to describe any Tuesday when the market experiences notable declines. The term is not commonly used in a traditional sense.- "Black Friday": Historically, "Black Friday" is primarily associated with retail and consumerism in the United States, marking the start of the holiday shopping season. However, the term has been used in the past to describe significant financial crises, like the Panic of 1869, which involved speculative gold price bubbles and led to a financial panic on September 24, 1869.- "Black Monday": "Black Monday" is a well-known historical term referring to the stock market crash on October 19, 1987. It is one of the most significant single-day drops in stock market history, with the Dow Jones Industrial Average dropping by 22.61%.
The following are the main factors contributing to Panic Tuesday: last Monday's market panic, fear of an economic meltdown, and the intense US-China trade tensions, as evidenced by the tariffs and the resulting freefall in global markets. insights from the recent past could provide a barometer for this week's market behavior, given the parallels drawn with Black Monday and the potential for a repeat of Stress Tuesday.
