Global Markets Stagger Amid Trade War Fears as Gold Sets New Records

Global stock markets plummeted, and gold surged to record highs after U.S. President Trump's announcement on tariffs, inciting fears of a global trade war and potential recession. Major indexes suffered declines, prompting investors to turn to safer assets, while analysts raised U.S. recession odds.

Global stock markets experienced sharp declines on Monday, with gold hitting new record heights, after U.S. President Donald Trump suggested tariffs could encompass all countries, prompting fears of a global trade war potentially leading to a recession.

The STOXX 600 in Europe saw a 1% dip, hitting its lowest point in eight weeks, while key indices in Frankfurt, London, and Paris similarly fell. In the U.S., futures for both the S&P 500 and Nasdaq descended, continuing Friday's downward trend.

The turmoil has driven investors toward safer assets such as sovereign bonds and the Japanese yen, while gold prices soared. This shift occurs as fears of recession increase, following a predicted rise in U.S. tariffs that could notably impact major global economies.

(With inputs from agencies.)