The stock markets across Europe and Asia plunged on Monday while fears of the world’s world impact on US President Donald Trump has deepened.
The FTSE 100 opened more than 5% less, after its most steep fall in five years on Friday.
Germany dropped by 10% in the first minutes of negotiation, before recovering ground, after Asian markets fell sharply overnight, with Hang Seng of Hong Kong with its fourth largest decrease of a day.
US markets also had to open lower, as economists warned that a recession in the country now seemed more and more likely.
Trump announced prices on the United States business partners on Thursday, many of which were more steep than economists had planned it.
While merchants have digested the news, the American markets have experienced their worst week since the start of the pandemic cocted in 2020, with more than 5 billions of dollars (3.9 tn £) deleted from the S&P 500.
Economists have speculated that the countries in May would try to negotiate agreements on prices.
But Sunday evening, Trump doubled, telling journalists that “sometimes you have to take medication to repair something”.
If world leaders are unable to negotiate agreements with Trump, prices can have a destructive effect on world -class economies, analysts have warned.
“Basically, investors are concerned with a big blow of business profits and a massive slowdown in economic growth,” said Russ MLUD, director of investments at AJ Bell.
Economists of the American banking banking giant Goldman Sachs on Monday predicted 45% of recession in the United States if Trump does not negotiate transactions on prices.
This came after JP Morgan, another American bank, said that she had seen 60% of recession in the country.
The prices could lead to a 0.8% drop in the GDP growth in the United Kingdom in 2025, added economists to KPMG.
“There is a strong incentive to request a negotiated regulation which decreases the need for prices,” said Yael Selin, chief economist of KPMG.
Meanwhile, concerns about a trade war between the United States and China sent Brent’s crude oil prices by more than 4%, after a drop of more than 10% last week.
This came after China retaliated with the announcement of the United States, with its own 34% tariffs on the goods that go to the country.
Copper, a good indicator of confidence among manufacturers, has dropped by about 1%.
However, gold, which is generally considered to be a “safe” investment when declining equity prices, have also lowered slightly.
