Stock markets around the world have extended their losses, as investors fear an economic downturn as a result of the massive tariffs imposed by the Trump administration.
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00:00DAX, Germany's main stock index, fell by 10 percent on Monday.
00:05The largest 40 firms of the country sit on this index.
00:09Investors fear that a global economic slump is around the corner as a direct result of
00:14U.S. tariffs.
00:16Analysts are worried.
00:18The panic may be justified because Donald Trump has completely altered the current global
00:23trade order.
00:25And I think it's only a reaction and less reasons to panic as compared to what we imagined.
00:32Shares of banks are particularly vulnerable.
00:35It's likely that central banks all over the world will further cut interest rates to counter
00:40the crisis.
00:41The Tokyo Stock Exchange, the Nikkei index, closed with 7.8 percent loss.
00:47Over in Hong Kong, the Hang Seng index fell by as much as 13.2 percent.
00:52This is Hang Seng's biggest loss in the last 28 years.
00:57Fears of an escalating trade war between Washington and Beijing are also embedded in this market
01:02reaction.
01:03Retaliatory tariffs from China on U.S. imports to the tune of 34 percent will come into effect
01:09on April 10.
01:11For the German and Asian markets, the signs are as negative as they are for the U.S.
01:19Nevertheless, we have other ways of getting out of this.
01:23And the European Union is strong and quite large, and so is Asia.
01:28So we have options and opportunities to trade with other regions.
01:33Fears of a global slump are causing the price of oil to falter.
01:37On Monday, a barrel of Brent crude from the North Sea cost 63.35 dollars, the lowest level
01:45since April 2021.