AnewZ Morning Brief - April 8th, 2025
Start your day informed with AnewZ Morning Brief: here are the top news stories for April 8th, covering the latest developments you need to know.
Global stock markets experienced a dramatic sell-off on Monday as investors reacted to the latest surge in US tariffs, raising fears of a potential global economic slowdown. European and Asian shares plummeted sharply, while US futures signaled the risk of a bear market, and oil prices also slid.
The widespread market decline follows US President Donald Trump’s announcement of significantly higher import taxes, combined with retaliatory measures from China last Thursday and Friday. Tokyo’s Nikkei 225 dropped nearly 8% shortly after the opening bell, with futures trading for the index even being temporarily suspended, ultimately closing 7.8% lower at 31,136.58.
European markets mirrored the downturn. Germany’s DAX index, which fell more than 10% at the opening on the Frankfurt exchange, managed a partial recovery only to finish the morning 5.8% lower. Similarly, Paris’ CAC 40 declined by 5.8%, and Britain’s FTSE 100 dropped 4.9% during the European session.
In the United States, pre-market futures indicated further weakness, with the S&P 500 losing 3.4%, the Dow Jones Industrial Average dropping 3.1%, and Nasdaq futures falling by 5.3%. Should these losses persist at market open, the S&P 500 could breach the bear market threshold—defined as a decline of more than 20% from its peak—especially after ending last week down 17.4%.
This sell-off builds on Friday’s severe market downturn—the worst since the COVID-19 pandemic—when the S&P 500 fell 6%, the Dow dropped 5.5%, and the Nasdaq declined 3.8%. Deutsche Bank analysts noted in a research report that there were no clear signs of stabilization or a bottom forming.
Reiterating his commitment to the tariffs, Trump, speaking from Air Force One on Sunday, remarked, “sometimes you have to take medicine to fix something,” dismissing concerns that his policies were intended to trigger market declines. Heavy selling ensued after China matched Trump’s tariffs last Friday, intensifying fears of an escalating trade war that could spiral into a global recession. Even a stronger-than-expected US jobs report failed to stem the slide.
“The uncertainty about how these tariffs will ultimately play out is really driving the plummet in stock prices,” said Rintaro Nishimura, an associate at Asia Group.
Asian markets bore the brunt of the turmoil as well. Hong Kong’s Hang Seng Index tumbled 13.2% to 19,828.30, the Shanghai Composite dropped 7.3% to 3,096.58, and Taiwan’s Taiex fell 9.7%. South Korea’s Kospi declined 5.6% to 2,328.20, while Australia’s ASX 200 slid 4.2% to 7,343.30, recovering slightly from an earlier loss of over 6%. These losses are particularly concerning for Asian economies, which are heavily reliant on exports to the US market.
“Beyond the market meltdown, the bigger concern is the impact on small, trade-dependent economies,” warned Gary Ng of Nataxis, emphasizing the need for Trump to reach at least partial tariff deals with other countries soon.
Oil prices also fell as market sentiment soured, with US benchmark crude dropping by $2.30 to $59.69 per barrel and Brent crude declining by $2.33 to $63.25 per barrel, amid concerns that slowed economic growth would dampen fuel demand. This drop came as OPEC+ nations increased production to counterbalance the decline.
Currency markets experienced volatility as well; the US dollar weakened against the Japanese yen, falling to 146.24 yen from 146.94, while the euro inched up by 0.3% to $1.0992.
Nathan Thooft, chief investment officer at Manulife Investment Management, predicted that additional countries might retaliate with their own tariffs, although he expects negotiations to be prolonged. “Market uncertainty and volatility are likely to persist for some time,” he noted.
While the Federal Reserve might offset some of the economic impact by lowering interest rates to boost borrowing and spending, Fed Chair Jerome Powell warned that lower rates could further stoke inflationary pressures already heightened by the tariffs.
Ultimately, much will depend on how long Trump’s tariff policy remains in place and how other nations respond. Some investors are holding onto hope that, after securing concessions from other countries, Trump might eventually ease the tariffs. Meanwhile, Citi’s head of US equity strategy, Stuart Kaiser, pointed out that current earnings estimates and stock valuations have not yet fully accounted for the potential downside of the unfolding trade conflict.
India has fired a series of missiles into Pakistani-controlled territory, in what it has described as “Operation Sindoor”
For the first time in history, an American has been chosen to lead the Catholic Church, as Cardinal Robert Prevost is named pope.
Discover every major VE Day 80 event in Britain, 5‑8 May 2025—from London’s parade and fly‑past to street parties, concerts and museum exhibitions.
Chinese e-commerce platform Temu has announced it will no longer sell goods directly from China to U.S. customers, shifting instead to U.S.-based sellers amid the closure of a long-criticized customs loophole.
Cardinals from 70 nations have gathered in Vatican City to begin the historic conclave to elect the next pope, following the death of Pope Francis 17 days ago. This conclave is the most geographically diverse in Church history, showcasing Francis’ legacy of inclusivity.
Ukraine is exploring whether to replace the U.S. dollar with the euro as its reference currency, as Kyiv aligns more closely with the EU and global trade fractures deepen.
The U.S. Federal Reserve kept its benchmark federal funds rate unchanged on Wednesday, maintaining the target range at 4.25% to 4.50%, in a widely expected move as the central bank navigates a complex economic environment marked by slowing inflation, global trade tensions, and political pressure.
Ford is raising prices on three of its Mexico-made models starting May 2, becoming one of the first major automakers to react to U.S. President Donald Trump's steep auto tariffs, which are reshaping industry costs and consumer prices.
As European NATO countries rush to strengthen their armed forces, large pension bills threaten to divert funds from urgently needed military hardware.
The European Commission has presented a roadmap to ensure the EU fully ends its dependency on Russian energy, while ensuring stable energy supplies and prices across the EU.
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