Global Stock Markets Decline Amid U.S. and China Economic Concerns
European and Asian stock markets mostly declined due to fears surrounding President Trump’s trade policies and the impact on U.S. and China economic growth. Deflation in Chinese consumer prices raised further concerns. Major European indices dropped, while Tokyo’s market rose. Experts highlighted ongoing deflationary pressures in China, suggesting the need for new economic measures.
On Monday, European and Asian stock markets predominantly declined, as investor concerns grew regarding the repercussions of President Donald Trump’s trade policy on the economies of the United States and China, the foremost global economies. A recent report indicating deflation in Chinese consumer prices further exacerbated apprehensions about economic growth. The indices in London, Paris, and Frankfurt reflected these declines, aligning with losses observed in the Hong Kong and Shanghai markets, although Tokyo noted a rise.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, emphasized, “Unease about the effect of Trump’s tariffs hangs over financial markets at the start of the week.” She further indicated that “the prospect of a recession in the US is lurking,” citing plummeting consumer confidence and rising trade complexities that are fostering investor apprehension.
During a Fox News interview, President Trump ignited concerns regarding a possible recession, articulating his reluctance to make predictions but acknowledging, “There is a period of transition, because what we are doing is very big — we are bringing wealth back to America.” In this context, traders maintained a close watch on the developments in Beijing, where Chinese officials concluded their annual meeting, forecasting a 2025 growth target of approximately five percent while establishing domestic demand as a central economic focus.
Despite these initiatives, evidence was mounting regarding the necessity for additional measures to stimulate China’s weakening economy, particularly highlighted by a 0.7 percent decline in consumer prices for February, marking the first such decrease in a year. Stephen Innes of SPI Asset Management remarked, “The data only reinforces what has been clear for months — deflationary pressures remain entrenched in the world’s second-largest economy.” He noted continued weakness in the property sector and domestic demand, along with limited benefits reaching consumers despite recent gains in tech stocks.
In summary, the current state of the global stock markets demonstrates significant concern over economic growth, particularly tied to President Trump’s trade policies and evolving circumstances in China. The ongoing deflation in Chinese consumer prices has amplified fears of potential recession in the U.S. These dynamics are influencing investor sentiment and market performance, with key indices experiencing notable declines, except for Japan’s Tokyo market.
Original Source: www.kpvi.com
