World stock markets plummet. Milan sinks, it's the worst

China’s retaliation against US tariffs has sparked panic selling across Asia and Wall Street, with volatility indices posting their biggest spike since the banking sector collapsed in 2023.

Thus Europe has burned another 819 billion, after the 422 of Thursday . And Piazza Affari, a bank-centric list, is the one that has suffered the most, closing down 6.53 %. But the tsunami has also overwhelmed London (-4.95%), Paris (-4.26%), Frankfurt (-4.95%) and Madrid (-5.8%), the worst weekly decline since the outbreak of the Covid pandemic five years ago.

Conversely, bonds rose, while oil hit a four-year low, with Federal Reserve Chairman Jerome Powell warning that the economic damage from a trade war will be more severe than expected, potentially increasing prices and slowing growth . But Powell’s words, which indicated that the central bank will respond to a persistent inflationary shock, did not reassure the market, which extended its losses. The S&P 500 is heading for its worst fall since Covid in March 2020, with a 4% drop, and the Nasdaq 100 has entered a ‘Bear’ market, wiping out almost $6 trillion from the peak of the technology benchmark. The Vix, which is used to indicate volatility, particularly of the S&P 500 index, has surged above 40 points, a sign of the uncertainty and fear that is sweeping the markets.

Oil has fallen about 14% in a couple of sessions to around $62 a barrel, and some are accumulating Treasuries, pushing yields lower. This despite some positives, such as job growth in the United States that beat forecasts in March. But the stock markets are not looking in the rearview mirror: “The speed, the magnitude and the potential repercussions of political changes drive the markets,” says one manager.

“My policies will never change. This is a great time to get rich, to get richer than ever before,” was Trump’s message of the day on his social media platform as the storm raged across the markets. Some cynical managers agreed: “It’s the best-performing stocks and indices that are falling the most, like banks, because that’s where investors can take their profits. But let me be clear and say it with conviction: For long-term investors, this collapse creates a lot of buying opportunities.”

“This would be the perfect time for Fed Chairman Jerome Powell to cut rates. He’s always late but now he could change his image quickly,” is Trump’s latest slap on Truth. “Energy prices are down, inflation is down with egg prices down 69%. Jobs are up. Jerome, cut interest rates and stop playing politics,” the tycoon urges. But the Fed, Chairman Powell retorts, “doesn’t need to rush.

He has time. He will wait and see” before deciding on any rate adjustments. “There will be blood,” is the title of the note from JpMorgan’s chief economist. “If Washington continues on this path, we run the risk of a new market collapse on Monday.” What is certain is that since the tycoon took office at the White House, on January 20, Wall Street has burned 9.6 trillion dollars. According to the calculations of some analysts, reported by MarketWatch, 5 trillion have gone up in smoke in the last two days alone.

World stock markets plummet. Milan sinks, it’s the worst

Bynewsitalia

By newsitalia

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