It’s been a bleak start to the week for global markets, as equities across continents plummeted in response to the latest tariff announcement by U.S. President Donald Trump. The decision has reignited fears of a full-scale trade war, shaking investor confidence and triggering a global sell-off.
In the United States, markets opened sharply lower on Monday. The S&P 500 fell by 3.17%, the Nasdaq tumbled by 4%, and the Dow Jones Industrial Average dropped by 3.17%, reflecting widespread anxiety over the potential economic fallout of the new tariffs.
Canada wasn’t spared either — the Toronto Stock Exchange fell by 1.01%, joining the broader global downturn.
British stocks also suffered heavy losses. At the market open, shares plunged to levels not seen since February 2024. The FTSE 100 — the UK’s most prominent stock index, comprising the 100 largest companies by market capitalisation — declined by a staggering 6%, marking its worst daily performance this year. All listed companies within the index were trading in negative territory.
The impact was even more severe in Asia. Hong Kong’s Hang Seng Index — a benchmark for some of the region’s biggest companies — collapsed by 13.22%, while Mainland China’s CSI 300 index slumped by 7.05%.
In Japan, the situation grew so dire that trading in futures was halted after circuit breakers were triggered. The country’s main stock index plunged nearly 9%, hitting a 17-month low, with banking stocks bearing the brunt of the losses.
Last week, China retaliated with a new round of tariffs on U.S. goods in direct response to President Trump’s policy shift. The tit-for-tat measures have sparked fears of a deepening trade war that could tip the global economy toward recession.
In times of financial instability, investors typically turn to safe-haven assets — and this time is no exception. Gold, U.S. Treasuries, the Japanese yen, German bunds, and the Swiss franc have all seen surging demand.
The yen has appreciated by roughly 3% against the dollar since 2 April, according to data from LSEG. The Swiss franc has also climbed more than 3%, now trading at 0.846 against the U.S. dollar — its strongest level in six months.
Meanwhile, U.S. Treasury yields continued to slide, as investors sought refuge in government bonds. On Friday, the yield on the benchmark 10-year Treasury note dropped below 4%, further signalling the flight to safety in global markets.