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As soon as the tariff issue came out, the global market exploded!
As soon as the Tokyo stock market opened in the morning, it fell to trigger a circuit breaker and suspend trading, while the stock of the giant Samsung in South Korea directly hit the daily limit down, prompting the exchange to urgently inject trillions of Korean won to stabilize the market.
The new energy stocks in China are the worst, with Contemporary Amperex Technology Co., Ltd. dropping nearly 10% in one day, and the renminbi exchange rate has also hit a new low in several years.
It's more exciting over in Europe, with German chemical giant BASF's stock price dropping 12% in a day. The boss sent a letter overnight saying they need to reconsider the hundreds of billions invested in China. LV's parent company in Paris saw its stock price plummet, and during a conference call, the CFO's voice was hoarse, stating that sales in the China region were directly halved. The London Metal Exchange is even more exaggerated, with a fund using a computer program to sell $730 million worth of copper futures in just 11 seconds, causing the system to crash.
Wall Street in the U.S. isn't doing much better; Tesla's stock price has fallen below $150, and a Saudi billionaire dumped $750 million worth of stocks in one go. The bond market is a complete mess, with professional traders saying this volatility is scarier than the 2008 financial crisis. The worst off are those trading cryptocurrencies; Bitcoin dropped below $51,000 in a single day, and a large holder secretly transferred over 20,000 Bitcoins to exchanges to crash the market, leading to a total liquidation of $5.8 billion across the network.
Insiders are panicking - a Hong Kong investment bank mogul said that 15% of funds were redeemed by clients in just two hours, Swiss private bank clients would rather lose 25% than not cash out immediately, and Singapore traders are complaining in the group that everything they buy is falling, and they can only hold onto cash and wait for the storm to pass.
Central banks around the world are also restless. Japan is frantically buying stocks, Switzerland suddenly cut interest rates, and financial institutions on the Federal Reserve side are desperately hoarding cash.
The most critical issue now is that there is a "retroactive clause" hidden in the U.S. tariff details, which means that all cars using Chinese batteries will have to pay additional taxes. The supply chains built by global car companies over the past five years will have to be completely rebuilt. Veteran traders say they have never seen anything like this; it is not just a normal rise and fall, but a complete reshuffling of the global economy!