Global Market Crash: Stock markets in Asia and Europe crashed on Monday, April 7, as investors’ concerns rise over a potential global recession due to Donald Trump’s tariffs, which are escalating the trade war between the United States and other world nations.
With no signs of de-escalation from the major economies in the world, the stock indices witness high investor selling pressure as they move to less risky assets during a potential upcoming economic crisis.
Global Market Movement
The FTSE 100 index in the United Kingdom tanked over 5 per cent on Monday, April 7, after the stock market opened. It is currently trading 4.92 per cent lower at 7,661.23 points, compared to 8,054.98 points at the previous market close.
Germany’s DAX index also tanked nearly 6 per cent on Monday, losing more than 1,100 points and currently trading at 19,470.69 points, compared to 20,641.72 points at the previous stock market close.
On Monday, the Asian markets plummeted, with the Hong Kong-based Hang Seng index taking the biggest hit, losing over 3,000 points. The benchmark index closed 13.22 per cent lower at 19,828.30 points, compared to 22,849.81 points at the previous market close.
The Japanese Nikkei 225 index also lost more than 2,600 points, closing 7.83 per cent lower at 31,136.58 points, compared to 33,780.58 points at the previous market close.
US stock market today
After a bloodbath in the US stock market on Friday, April 4, the US markets are set to open on Monday, April 7, amid high tensions looming over global investors.
Experts analyse how the benchmark Dow Jones index had entered the ‘oversold territory’, and if the wider market sell-off continues its trend on Monday, the index is likely to sustain below the 38,264 level.
On Friday, Dow Jones lost more than 2,200 points, closing 5.50 per cent lower at 38,314.86 points. The Dow Jones Futures are trading over 1,200 points lower on Monday, ahead of the US market open, indicating chances that the ripple effect of a global stock market crash can spark a mass selling in US stocks.
“The Dow Jones plunged over 5% last week, breaking the neckline of a weekly double top at 41,647, triggering a swift free fall. With a 15% decline over nine weeks, the index now sits in highly oversold territory,” said Anshul Jain, the Head of Research at Lakshmishree Investment and Securities.
“A sharp dead cat bounce is likely if the index sweeps last week’s low at 38,264. However, if the selloff persists and the index sustains below 38,264, the next downside target aligns with the 50-month EMA near 36,000—a critical support zone,” he said.
Nasdaq Outlook today
On the Nasdaq front, Anshul Jain highlighted that the New York-based Nasdaq Composite index has experienced a more than 21 per cent correction in the last six weeks and is likely to witness a temporary recovery at the current level in the US stock market session.
“The Nasdaq has corrected over 21% in the last six weeks, including a steep 9.77% drop. The index has tested the key monthly swing low at 17,435 — a strong support zone. A dead cat bounce from this level looks likely. If the index sustains above the 17,435–17,500 range in the current week, a short-covering rally towards the 20-month EMA at 18,500 is expected. However, this bounce would be technical, not a sign of trend reversal,” said the stock market expert ahead of the US markets today.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
