Financial markets in panic: global collapse and fear of recession

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Financial Markets in Panic: Global Collapse and Fear of Recession
In recent hours, global financial markets continue to experience severe turbulence. Today's morning trading in Europe began with a sharp decline:
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German DAX fell by more than 6.5%,
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British FTSE 100 - by approximately 5%,
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The French index also declined by almost 6%.
These losses are a continuation of the "wave of horror" caused by the trade measures of Donald Trump's administration. Asian markets have already demonstrated a "sea of red":
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Japanese Nikkei at its peak was down by almost 9%,
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Hang Seng in Hong Kong fell by more than 13%,
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South Korea and Taiwan - also in a deep "red zone".
Chinese investors are warning of a "terrible Monday." Despite the panic, Trump remains calm. Speaking aboard Air Force One, he stated:
"Sometimes you need to take medicine to get better. We will become the most dominant economy in the world."
"Financial Massacre" in Asia
Journalists and analysts describe the situation as a real "financial massacre." The stock market decline this week turned out to be even stronger than in previous days. The main reason is the escalation of the global trade war. In response to American tariffs, China imposed retaliatory duties of 25% on all imports from the US. This intensified fears about a possible global recession and disruption of international supply chains.
Europe Under Attack: How Will the EU Respond?
Against the backdrop of the crisis, EU trade ministers gathered in Luxembourg to discuss countermeasures. The European Commission is considering the introduction of retaliatory duties amounting to 26 billion euros against American goods, including cars, wine, cosmetics, and steel. Commission President Ursula von der Leyen spoke about the need for a united European front. However, the EU has little time left before the introduction of new American tariffs on Wednesday.
What's Happening to the Economy in Reality?
The decline in stock values affects not only traders but also ordinary people:
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Pension funds lose value, albeit temporarily.
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Consumer prices are rising as companies pass on the costs of tariffs to buyers.
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Companies lose access to cheap credit, which affects investments and employment.
As KPMG economist Yale Selfin notes, business confidence is falling. This reduces investment activity and consequently economic growth. Many countries fear "dumping" trade - cheap Chinese goods displaced from the US could crash European markets.
Is There Hope for Stabilization?
Analysts hope that the current panic will not last long. The main thing now is to prevent escalation of the trade war. Hopes are pinned on negotiations, but the chances for a quick solution remain low.
Investors and governments are waiting for clarity - it is uncertainty that is currently pushing markets down.
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