On March 10, 2025, stock markets faced a downturn as anxieties over President Donald Trump’s trade policies loomed large, impacting both the United States and China. Wall Street’s major indices slid, with the tech-oriented Nasdaq dropping by 2%. This slump followed Trump’s reluctance to dismiss the notion of a potential U.S. recession in 2025, stating, “I hate to predict things like that.” His comments indicated an ongoing transition aimed at restoring wealth to America, though he recognised that it would take time.
Investors were left shaken by the unpredictable nature of Trump’s tariffs against nations including Canada, Mexico, and China, leading to uncertainty in U.S. financial markets. Susannah Streeter from Hargreaves Lansdown remarked, “Unease about the effect of Trump’s tariffs hangs over financial markets at the start of the week,” indicating a waning consumer confidence and a growing complexity in trade that made investors jittery.
European stock markets also fell, influenced by concerns regarding political stability in Germany and its chancellor-in-waiting, Friedrich Merz. David Morrison of Trade Nation highlighted that “risk sentiment has soured,” as markets reacted to Trump’s inconsistent tariff decisions, complicating the pricing of investments amid a clouding U.S. economic outlook.
The European Union hinted that the Trump administration might not be inclined towards a trade deal that avoids tariffs on the bloc. Meanwhile, retaliatory tariffs from China on U.S. agricultural products were enacted, exacerbating the trade tensions. Kathleen Brooks from XTB discussed the implications of Merz’s spending plan facing political hurdles, curbing investor optimism.
In China, consumer prices saw a decline of 0.7% in February, marking the first dip in over a year and signalling persistent deflationary pressures, as mentioned by Stephen Innes from SPI Asset Management. The sluggish economic indicators affected markets in Hong Kong and Shanghai, leading to further declines, while Tokyo observed a slight gain.
Stock markets slumped on March 10, 2025, reflecting investor concerns over President Trump’s trade policies and a potential U.S. recession. Wall Street indices fell significantly, while European shares mirrored this decline amid political uncertainties in Germany. Economic data from China indicating falling consumer prices added to the anxiety, highlighting ongoing deflationary pressures.
The stock markets experienced a downward trend driven by fears surrounding trade policies, political uncertainties, and disappointing economic data from both the U.S. and China. Investors are grappling with the unpredictable nature of Trump’s tariffs and their economic repercussions. As deflationary pressures in China become evident and political challenges in Europe persist, the road ahead appears complicated and fraught with potential downturns.
Original Source: www.thehindu.com
