The Chinese stock market opened with significant losses on Monday, April 7, amid global economic turmoil and increasing volatility.
Losses in the Chinese Stock Market
The Shanghai Composite Index fell by about 6.34%, trading around 3,130.17 during the early Asian trading session. The Hang Seng Index in Hong Kong was also severely affected, dropping about 10.70% to 20,404.
Expected Impact on Western Financial Markets
After China retaliated against U.S. tariffs last week, the European Union is expected to announce its reciprocal tariffs this week. While some countries have opted to negotiate with the U.S., major economies are likely to follow Beijing’s example. Consequently, the U.S. stock market is expected to take further hits, especially in major indexes such as Dow, S&P 500, and Nasdaq.
Impact on the Crypto Industry
The crypto market has experienced delayed impacts from the ongoing global trade wars, temporarily earning a title for a reliable store of value. However, Bitcoin price dropped below the key support level of about $80k on Sunday, triggering nearly $1 billion in crypto liquidations, with $850M involving long traders. The wider crypto market is likely to remain in a bearish mode.
Current conditions in stock and cryptocurrency markets highlight the influence of global economic instability, leading to significant losses and liquidations in investment markets.
