Hong Kong Scholarship led the losses, with a decrease of 13.22%, the highest low since the 1997 Asian financial crisis; In Brazil, American currency hit R $ 5.90, with appreciation of 1.13%
Scholarships around the world record strong losses on Monday (7), expanding the risk aversion scenario started last week with the announcement of import tariffs by the United States. President Donald Trump’s aggressive trade policy and China’s immediate retaliation intensified the fears of a global trade war, causing significant falls in the markets of Asia, Europe and the Americas, as well as the dollar and the devaluation of oil.
Wall Street futures indicate another negative day. The S&P 500 Index Future Contract fell 3.5% in the morning, while Nasdaq’s fell 4.4%. As a result, investors anticipate additional losses after a week when the US market lost nearly $ 6 trillion in market value. VIX’s volatility rate, known as Wall Street’s “Fear Index”, jumped over 60 points – a level associated with extreme turmoil – the highest level since last August. The measure reflects the expectation of strong instability in the US market within the next 30 days.
In Asia, the main stock rates closed in a strong fall. The Hong Kong Exchange led the losses, with a decrease of 13.22%, the highest low since the 1997 Asian financial crisis. In China, CSI300 and SSEC rates fell 7.05%and 7.34%, respectively, after reopening of the markets on holiday. The Taiwan scholarship fell 9.7%, while Japan’s lost 8.8%after circuit breaker.
In Europe, the Stoxx 600 index fell 6.2% at the beginning of the trading session, but softened the losses and operated at a low of 4.3% around 8am (Brasília time). Germany’s DAX fell 4.28%; CAC 40, from France, 4.47%; UK FTSE 100, 3.92%; and the FTSE/MIB of Milan, 5.03%. Ibovespa, the main index of B3 (Brazil’s Stock Exchange), accompanied the global movement and retreated 1.86% in the first minutes of the trading session at 124,890 points. With investors seeking protection, the dollar operates in strong discharge. At 10:30 am, the American currency was negotiated at R $ 5.90, with appreciation of 1.13%. Last Friday (4), the dollar had risen 3.68%. In the month, the increase is 2.27%.
The fear of slowdown in the global economy also pressures oil prices. Brent, international reference, fell 3.3% and was quoted at $ 63.48 the barrel. The US WTI fell 3.7%to $ 59.67 – the lowest levels since April 2021. OPEC+ decision to increase oil production has contributed to negative pressure.
Despite the negative reaction of the markets, President Donald Trump reaffirmed his position in defense of tariffs. “Sometimes you need to take medicine to fix something,” he told reporters at Air Force One. Trump has ruled out any agreement with China while the American commercial deficit is not reduced. On Sunday (6), he wrote in his social network that the tariffs are “beautiful things to see.” Treasury Secretary Scott Bessent has minimized the effects of the measures. “Our business partners have taken advantage of us,” he said. Asked about the possibility of retreat, he said only that he will wait for counterparts from other countries.
China retaliated with 34% tariffs on American products and announced restrictions on rare land exports-strategic raw materials for the technological industry. The European Union is expected to also announce measures against the US tariff package later this week. Analysts warn of the risks of a global recession. According to JPMorgan, the American economy can shrink 0.3% this year, reversing a previous growth forecast of 1.3%. Federal Reserve President Jay Powell warned of the risk of “higher inflation and slower growth.”
Posted by Felipe Dantas
*Report produced with the aid of AI
