Atyrau, Kazakhstan – U.S. oil prices don drop below $60 per barrel on Sunday, as fears about President Donald Trump’s global tariffs don dey fuel concerns about a possible recession both for the U.S. and the world. Futures fell over 3%, closing at $59.78, marking the lowest WTI prices since April 2021.
Market analysts dey fear say these tariffs fit lead to higher costs for businesses, which fit slow down economic activities and reduce oil demand. JPMorgan don raise their recession prediction to 60% after observing these tariff impacts.
As the news spread, Asia-Pacific markets maintain a risk-off mindset on Monday. Hong Kong markets dey lead loss with Hang Seng Index dropping 12.53%, while the Hang Seng Tech index tok 16.29% fall within one hour of trading. Mainland China’s market also face serious decline, dropping 7.05% to 3,589.44, the largest single-day loss since last October.
Qi Wang, chief investment officer for UOB Kay Hian, explain say, ‘Market go continue to react to these tariff concerns.’ He dey keep close eye on the responses from the European Union and how both China and the U.S. fit retaliate.
In Japan, the benchmark Nikkei index fell by 7.83% to 31,136.58, while the broader Topix index dropped 7.79% to 2,288.66. Trading in Japanese futures also hit circuit breakers due to heavy selling. In South Korea, KOSPI fell by 5.57% to 2,328.20, marking a significant decline.
India also feel the heat, with benchmark indexes opening sharply lower. Nifty 50 and BSE Sensex both saw losses over 4% amidst growing global trade tensions. Major companies like Tata Motors and Reliance Industries also experienced drops, with shares tumbling down to their lowest levels in months.
Economists at Nomura caution that these tariff hikes go have a severe effect on Japan’s economy, lowering growth projections from 0.9% to 0.6% for fiscal 2025. They believe that the repercussions from these new tariffs go begin to show within the second quarter of 2025, affecting both the U.S. and Japanese economies.
As many markets you dey see significant declines, global investors dey sell off assets and retreat to safer options. The global atmosphere remain shaky, as new tariffs set to kick off this week don intensify fears about a potential recession.
Across various commodity markets, precious metals like gold also online facing volatility, with traders selling off bullion to cover losses. Gold prices recently traded at about $2,981.69 per ounce.
The market atmosphere don turn serious, as investors scramble to navigate these challenges posed by the latest announcements from the Trump administration. As the situation unfolds, more developments surely go impact these markets globally.
