Why Are Global Markets Crashing — Is This the First Sign of a Recession?

Markets Discussions
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A wave of deep red swept across global equity markets today, with many major indices falling sharply:

Hong Kong: -13.2%
Taiwan: -9.7%
Japan: -8.3%
Singapore: -7.4%
China: -7.3%
Italy: -6.9%
Sweden: -6.2%
Netherlands: -6.1%
Australia: -6.1%
France: -6%
Spain: -5.7%
Germany: -5.6%
Switzerland: -5.5%
UK: -4.6%
Philippines: -4.3%
Malaysia: -4%
India: -3.8%
Russia: -3.1%
Turkey: -2.5%
Saudi Arabia: +0.5%

Is a Recession Looming?

Markets don’t fall like this without sending a signal. While this doesn’t automatically mean a global recession is guaranteed, the breadth and depth of the decline suggests:

  • Investor confidence is rapidly deteriorating
  • Flight to safety is intensifying (expect movement into gold, bonds, and USD)
  • Demand destruction may be more severe than anticipated, especially in consumer-led economies

If trade tensions escalate and corporate profits shrink further, the odds of a global slowdown or mild recession in the next 6–12 months rise sharply.

ScanX - 7th April 2025
ScanX - 7th April 20252296×1430 399 KB

:point_right: Do you think tariffs help or hurt economies in today’s globalized world?

1 Like
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Countries which promoted free trade and globalization are now engaging in protectionism because it suits them better now.

Tariffs are barriers to free trade. Tariffs are necessary to prevent cheap goods from flooding our market and destroying or preventing our domestic industries from growing. I think a developing country like us who suffered the brunt of imperialism have the moral right to engage in such protectionism than a developed country like USA. But USA will do what it has to do to serve it’s interests - force countries to reduce tariffs to make their exports attractive.

Market meanwhile moves in cycles. I think the new wave of investors who came post covid will be served better by a bear market rather than the recent raging bull market to get a better perspective of what the market is all about.

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With the SP500 at a ~20% discount, it seems we are looking at a path to recovery rather than facing a recession.