Global Markets Shaken: Sensex Plunges 3,900 Points Amid Escalating US-China Trade War, Futures Trading Halted In Japan

Mumbai: The world’s financial markets are reeling from unprecedented turmoil following the escalation of the US-China trade war. The announcement of new tariffs by US President Donald Trump and China’s retaliatory measures have triggered a massive sell-off across global markets. On the morning of April 7, the Indian stock market witnessed a sharp decline. Both Sensex and Nifty fell by around 3 per cent. The panic among investors grew because China imposed retaliatory tariffs on the US, reigniting fears of a global trade war. The market was in chaos in the morning—Sensex plummeted by 3,900 points, which is roughly a 5 per cent drop. Nifty fell 5 per cent to the level of 21,743, marking its lowest level in the past 10 months. The sell-off was so severe that all stocks in the Nifty 50 ended up in the red. The ratio of advancing to declining stocks was 1:3, meaning for every stock that went up, three stocks fell.

Asia Faces Historic Declines

Asian markets have been hit hard, with indices plunging over 8 per cent. The Nifty 50 slipped around 900 points, signaling a grim outlook for Indian markets. Hong Kong’s Hang Seng Index crashed more than 10 per cent, while Shanghai’s Composite Index fell 5 per cent. Singapore and Japan’s markets also tumbled over 8 per cent, leading to a halt in Japan’s Nikkei Futures trading due to hitting the lower circuit limit.

US Markets Suffer Heavy Losses

The US markets are enduring their worst performance since the COVID-19 pandemic. Dow futures plummeted by 1,000 points, with S&P and Nasdaq futures down 3 per cent. In just two days, US investors lost around Rs 420 lakh crores. The Dow is down 2 per cent, while Nasdaq is just 300 points away from its 52-week low. The Russell 2000 index is approaching recession levels, and the Dollar Index has slipped to 103. The 10-year US Treasury yield stands at 3.98 per cent.

Commodities Plunge Amid Trade Tensions

The tariff war’s impact extends to commodities. Crude oil prices have dropped significantly, with Brent crude falling to USD 63.03 per barrel—the lowest since 2021—and WTI crude at USD 61 per barrel. Over the past four days, crude prices have plummeted more than 16 per cent. Gold and silver also faced declines, with COMEX Gold dropping to USD 3,000 (a one-month low) and silver sliding to USD 30, a four-month low.

US-China Tariff Escalation

In retaliation to Trump’s tariffs, China imposed a 34 per cent tariff on US goods, effective April 10. China has also restricted the export of seven rare earth minerals, initiated anti-dumping inquiries, and blacklisted 11 US defense companies. Additionally, 16 American firms face export controls, and China has halted barley imports from the US.

Trump’s Defiant Response

President Trump expressed frustration over China’s retaliatory actions, refusing to roll back the tariffs. He criticized the Federal Reserve, urging a rate cut, while Fed Chief Jerome Powell warned that Trump’s tariffs could spur inflation and slow growth.

Global Leaders Speak Out

Prominent figures like Warren Buffett and Elon Musk have criticized Trump’s trade policies. Hong Kong’s government also condemned the tariffs, emphasizing the threat to global trade stability.

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