World is in reset mode for 1st time since World War II: Experts on US tariffs

Mumbai, April 7 (IANS) Even as the Indian stock market witnessed a sharp fall on Monday, market watchers said that investors have to also keep an eye on the retaliatory measures by the European Union (EU) and other countries in response to the US reciprocal tariffs.

Economist Pankaj Jaiswal told IANS that, "the world is in reset mode for the first time since World War II, due to which the stock markets globally, including India, have fallen drastically.”

"There is a risk of recession and inflation in the world due to the trade war, and the US will be the most affected by this," he added.

Market expert Sunil Shah, while speaking to IANS, said that about 4 per cent decline in the Indian stock market is due to the 34 per cent tariff imposed by China in retaliation to the US reciprocal tariffs.

Shah said, "Investors know that no country is going to benefit from the US tariffs, and this is the core reason why the world's major markets crashed today.”

Selling was seen in most Asian markets. Tokyo, Shanghai, Bangkok, Seoul, and Hang Seng fell up to 11 per cent.

The US markets witnessed a massive sell-off on Friday due to reciprocal tariffs. The Dow closed down by 5.50 per cent, and the technology index Nasdaq was down by nearly 5.82 per cent.

Meanwhile, the Indian stock markets extended their decline for the third session on Monday following a global sell-off due to rising trade war fears.

The reason for this decline is attributed to the reciprocal tariff imposed by US president Donald Trump, which has increased the risk of trade war all over the world.

Oil prices have been driven sharply lower amid global uncertainties, especially as Saudi Arabia issued its biggest price cut on the commodity in years. Brent crude slipped 2.67 per cent to $63.82 a barrel, while West Texas Intermediate fell 2.69 per cent to $60.31.

--IANS

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