Madrid, Spain — European stock markets cratered on Monday, plunging nearly 6% across major indices, as a global selloff intensified amid fears of a looming worldwide recession and escalating U.S.-China trade tensions.
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The steep declines followed massive losses in Asia, triggered by Wall Street’s worst day since March 2020. By 09:30 GMT, Milan led Europe’s downturn with a 6.7% drop, trailed by Paris (-6.3%), Frankfurt (-6.19%), and the Euro Stoxx 50 (-6.24%). Madrid’s IBEX 35 fell 5.94%, while London’s FTSE 100 lost 4.86%. The Stoxx 600 slid 5.7%. Though markets clawed back some losses later, technology, industrials, and energy stocks bore the heaviest blows.
Sector Carnage Deepens
The Stoxx 600’s tech, industrials, and energy sectors each shed around 6%. Germany’s Auto1 Group plummeted over 12%, the day’s worst performer, while only Frontline (+1.56%) and Qiagen (+1.27%) ended in the green.
Wall Street’s Ripple Effect
Friday’s U.S. selloff—Dow (-5.5%), S&P 500 (-5.97%), Nasdaq (-5.82%)—set the tone, with futures down 4% Monday. The trigger: China’s retaliation to new U.S. tariffs with a 34% levy on American imports and curbs on rare earth exports. President Trump defended the trade war, while Treasury Secretary Scott Bessent downplayed recession fears as “overstated.”Asia’s Historic Collapse.
Asian Markets Reel from Worst Losses in Years
Asian markets reeled, with Hong Kong’s Hang Seng crashing 13.22%—its worst since 2008—and Taiwan logging a record 9.57% drop. Tokyo fell 7.75%, Shanghai 7.34%, Shenzhen 10.79%, Seoul 5.57%, and Sydney 4.23%. Chinese officials hinted at emergency stimulus to stem the bleeding.
Assets in Freefall
The euro slipped to $1.0956, Germany’s 10-year bond yield dropped to 2.457%, Brent crude hit $63 a barrel (down 3.93%), gold dipped to $3,025.50, and Bitcoin fell 3.2% to $76,300.
As volatility grips markets, investors brace for more turbulence, questioning the global economy’s ability to withstand escalating trade and geopolitical shocks.
SOURCE : EFE. | Follow Us: Facebook | Instagram | Twitter | Youtube |
