Stock markets fall worldwide after Trump's far-reaching tariffs

After US President Donald Trump announced far-reaching tariffs against global trading partners, stock markets worldwide collapsed and the US dollar reached a six-month low. The European markets fell after a sell-off in Asia, and US futures signaled further losses. The London FTSE 100 fell by 1.5%, the German DAX lost 2.3%, and the French CAC dropped by 2.5%. The dollar dropped by almost 2% against major currencies, while the pound rose to €1.19. Deutsche Bank warned of a possible 'dollar crisis of confidence'. Investors increasingly bet on interest rate cuts to avert a recession. 'Insane tariffs for every single country scream for a negotiation tactic that will keep the markets in suspense for the foreseeable future... Fortunately, this means that there is now considerable room for lower tariffs, even if a 10% base remains,' said Adam Hetts, a portfolio manager at Janus Henderson Investors. The likelihood of a European Central Bank interest rate cut this month rose to 92%, while the likelihood of a Bank of England interest rate cut in May rose to 77%. Asian markets suffered heavy losses, with the Japanese Nikkei and Topix falling by more than 3% after facing a 24% US tariff. The Vietnamese stock market, subject to 46% tariffs, plummeted by 6.7%. The Hang Seng in Hong Kong fell by 1.9%. US futures also declined: the Dow future dropped by 2.7%, the S&P 500 future by 3.4%, and the Nasdaq future by 3.5%. Apple fell by 7%, Nvidia by 5.6%, Tesla by over 8%, and Nike by 7.3%. Brent crude oil fell by 5.8% to €63.07 per barrel as lower global demand was feared. Meanwhile, gold climbed to a record high of €2,809.42 as investors sought safe havens. Analysts warned that if tariffs were not reduced soon, expectations of a recession in the US would significantly increase.