Frankfurt/London/Tokyo - Stock markets around the world started the new week with significant declines. Investors were alarmed by US President Donald Trump's announcement last week to impose sweeping tariffs, sparking fears of a new trade war. The negative reaction was particularly evident on the main European bourses, which opened with significant losses.
Frankfurt's DAX index was down 10 percent in early trading, one of the biggest daily declines in years. London's FTSE 100 wrote off nearly six per cent. The markets are reacting to concerns about possible disruptions to global trade and the growth of the world economy, which could adversely affect export firms in Europe.
The strong sell-off also hit stock markets in Asia. In Tokyo, indices opened deep in the red as investors took profits and moved their funds into safer assets such as government bonds or gold.
Analysts warn that if trade tensions between the United States and other economies escalate, it could mean longer-term instability in financial markets and a threat to investment confidence.
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