Global Markets Tumble as Trade Tensions Escalate

Global markets plunged amid escalating trade tensions as the White House persists with its tariff plans. Investors anticipate potential interest rate cuts, fearing an imminent recession. Major indices worldwide saw significant losses, contributing to inflationary fears despite a flight to safe-haven assets like Treasury yields and gold.

Asian stock markets experienced a dramatic downturn on Monday, as the continuation of expansive tariff measures from the White House showed no signs of abating. Investors fearing a looming recession are now betting on a series of interest rate cuts by the U.S. Federal Reserve, potentially starting as early as May.

The financial tumult was exacerbated by President Donald Trump's insistence that trade deficits be addressed before any deal with China is made. Despite substantial market losses, Trump remains firm on his stance, seemingly unfazed by these economic repercussions, as shared by Sean Callow, a senior analyst at ITC Markets.

Steep declines in major indices extended to Europe and further impacted energy prices, with oil taking a significant hit. Meanwhile, Treasury yields dropped as safe-haven assets saw increased demand. Analysts express concerns over rising tariff-driven costs potentially eroding corporate margins amidst the corporate earnings season.

(With inputs from agencies.)