08.04.2025 09:01
The effects of global trade wars continue to be felt in the markets. China's decision to retaliate against Trump's additional tariff measures continues to unsettle the financial markets. Following the opening of U.S. stock markets with losses of up to 5% last night, the situation remained similar in Asian markets today.
```html
Global uncertainty is causing a collapse in the markets. Experts indicate that if this situation continues, an economic recession may occur. The dollar, gold, silver, stock markets, and cryptocurrencies are experiencing significant declines. Trump, who declared April 2 as 'Liberation Day' after announcing additional tax decisions, faced retaliation from China after announcing new import tariffs on all goods entering the country; the Chinese government announced that starting from April 10, a 34% additional customs duty would be applied to U.S. goods. The dollar index traded at 102.5, down 0.5%. The dollar lost 1% against the yen in its initial trades. Last week, the dollar had declined by 2% against the yen.
FEARS ARE GROWING
The U.S. customs tariff package has raised concerns that a large-scale trade war could lead to a global economic slowdown. The uncertainty created by trade wars has had a significant impact on all markets, including Turkey, as expected. Following last week's sharp declines, stock markets started the new week with further steep drops. The tariff earthquake has affected not only the stock markets but also the dollar and cryptocurrencies; sales in gold have also deepened.
LOSSES IN MONEY MARKETS ARE INCREASING DRAMATICALLY
Losses in Asian, European, and U.S. stock markets deepened as of yesterday. Borsa Istanbul also felt the impact of the global earthquake. According to Hürriyet's report:
- The BIST 100 index in Borsa Istanbul started the week with a 2.80% drop at 9,117.38 points. The selling pressure that began from Asia continued to affect other markets as well. The Hang Seng index in Hong Kong, which declined by 2.46% last week, experienced a black day yesterday with a 13.2% loss. The Shanghai Composite index in China, which lost 0.28% last week, fell by 7.3% yesterday. The Nikkei 225 index in Japan, which dropped by 9% last week, closed down 7.7% yesterday.
- The price of Bitcoin, the largest cryptocurrency, fell by more than 10% in the last 24 hours due to uncertainties regarding the potential consequences of the U.S.'s aggressive customs tariff policy, dropping below $75,000.
EUROPE WAS ALSO SHAKEN
- The STOXX 600 index, which tracks Europe's largest companies, fell by 5.8%. Approximately 97% of the companies in the STOXX 600 saw their stock prices decline.
- U.S. stock markets also started the new week with a sharp collapse yesterday. At the opening, the Dow Jones index lost over 1,000 points. The S&P 500 index fell by 3.51%, and the Nasdaq index experienced a 3.91% loss. The S&P 500 entered the 'bear market' territory, dropping about 20% from its all-time high.
INTEREST RATE DECISION PULLED FORWARD
- The Federal Reserve's (Fed) first interest rate cut expectation has been pulled forward to May in line with increasing recession concerns.
- Analysts noted that there is a 53% chance that the Fed will cut rates in May, and concerns that tariffs could negatively impact the economy have strengthened expectations that the bank will make a total of 4 rate cuts by the end of the year.
TRUMP'S REMARKS LIKE A RETORT
After the market collapse, Trump once again called on the Fed via Truth Social. Stating that there is no inflation in the country, Trump indicated that the Fed is moving slowly. He claimed that economic indicators are performing positively and that the U.S. is the winning side in foreign trade, saying, "Oil prices have fallen, interest rates have fallen, food prices have fallen, there is no inflation." Trump also targeted China, labeling it as the 'biggest abuser.'
```