Wall Street is sinking again, following other global markets lower, as worries deepen about whether President Donald Trump’s trade war will torpedo the global economy. European and Asian shares saw dramatic losses, the leading U.S. index is flirting with bear market territory, and oil prices are sagging.
Where the markets stand:
- US: The S&P 500 was down 3.8% in early trading Monday, coming off its worst week since COVID began crashing the global economy in March 2020. The Dow Jones Industrial Average was down 1,200 points, and the Nasdaq composite was 4% lower. A barrel of benchmark U.S. crude oil briefly dropped below $60 for the first time since 2021.
- Asia: Stocks in Hong Kong plunged 13.2% for their worst day since 1997. Japan’s Nikkei index tumbled nearly 8%
- Europe: Germany’s DAX index briefly fell more than 10% at the open on the Frankfurt exchange, but recovered some ground to move down 5.8% in morning trading. In Paris, the CAC 40 shed 5.8%, while Britain’s FTSE 100 lost 4.9% in the European morning.
European Union will focus on global trade beyond the US
European Commission President Ursula von der Leyen says the European Union is looking to do more business elsewhere in the world as President Trump’s tariffs hit international trade.
She said Monday that the EU is also is setting up a taskforce to monitor any dumping on its markets that might happen as trade patterns change.
“We will focus like a laser beam on the 83% of global trade that is beyond the United States. Vast opportunities,” von der Leyen said. After deals already done with Mexico and Switzerland, she said, “we’re working on India, Thailand, Malaysia, Indonesia and many others.”
Von der Leyen says the taskforce will help to monitor any unexpected surges in imports and “protect ourselves against indirect effects through trade diversion.”
The European Commission negotiates trade deals and disputes on behalf of the 27 EU member countries.
Von der Leyen insists the EU still wants a deal with the Trump administration, but that “we are preparing a potential list for retaliation, and other measures for retaliation, if this is necessary.”
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