Towards a black Monday on the stock market following tariffs

The weekend doesn't seem to have calmed the economic circles following the announcement of US tariffs and the Chinese response. Both Asian and European markets are plunging this Monday.

Due to the time difference, Asian stock markets set the trend in the markets for this Monday, April 7, 2025. Following the weekend, the graphs are plunging, initiated by a Friday of general decline after Trump's method of heavy tariffs to heal the American economy, which he sees as sick. China retaliated with 'countermeasures' in reciprocal tariff charges. Beijing claims it's a measure to force Washington to return to the 'right path'. The Shanghai Stock Exchange fell by 7.7% at 8am, Paris time, the afternoon in China (3pm). In Hong Kong, the situation was even more critical, with a drop reaching 12%. The same movement was observed in Tokyo, Taipei, and Seoul with significant declines. The closure is expected to be painful, especially as in Europe, the situation is hardly more encouraging.

European Markets on the Verge of Panic

From the opening this Monday, European indices were in deep red. Thus, the Frankfurt Stock Exchange opened at -7.86%, the most affected, with a DAX (40 indicative German stocks) losing more than 10%. In Paris, the drop is 6.19% against 5.83% in London and 2.32% in Milan. In Switzerland, harshly targeted by the tariffs, the stock market lost 6.82% at the opening, despite a visit by the Secretary of State for Economy Helene Budliger Artieda to Washington on Sunday. In the United States, short-term contracts are sharply down, foreboding a black day on Wall Street. Especially since oil prices seem to begin a nosedive...

(MH with Olivier Duquesne – Sources: RTBF Info, Le Monde, Le Temps – Picture: © picture alliance / CFOTO | CFOTO)