European Markets Plunge Amid Escalating Trade Tensions

European stock markets experienced a sharp downturn today, triggered by escalating global trade tensions. The Milan Stock Exchange, in particular, suffered a significant blow, reflecting broader anxieties across the continent. the commercial war, stoked by international trade policies, has sent shockwaves through the financial world.

The Piazza Affari witnessed a dramatic sell-off,with the benchmark Ftse Mib index plummeting by over 7.5%, breaching the 35,000-point threshold.This decline underscores the immediate impact of trade disputes on investor confidence and market stability.

Historical Context: Milan’s Most Volatile Trading Days

While today’s market activity is concerning, it’s crucial to remember that the milan stock exchange has weathered similar storms in the past. Examining historical precedents provides context and outlook on the current situation.

Several events have triggered significant market downturns in Milan’s history. these include:

• june 24, 2016: The Brexit referendum resulted in a staggering 12.48% drop.
• October 6, 2008: the collapse of Lehman Brothers led to an 8.24% decline.
• September 11, 2001: The terrorist attacks on the World Trade Center and the Pentagon caused a 7.57% fall.

Other notable periods of volatility include the financial crises of 2008 and 2011.Though, the most severe single-day loss occurred on March 12, 2020, when the Milan Stock Exchange plummeted by 16.92% in the wake of the initial COVID-19 lockdown.

Retaliatory Measures and Global Response

the European Union is preparing to respond to the latest trade measures. Ursula von der Leyen, President of the European Commission, indicated that the EU would announce its response in late April or early May.she also expressed a willingness to negotiate a compromise.

China has already taken decisive action, announcing a 34% tariff on imports of American goods, effective April 10. Furthermore, the Chinese Ministry of Commerce has indicated increased scrutiny of exports of specific rare earth elements, including gadolinium and yttrium, which are vital components in various industries, from medical imaging to consumer electronics.

Beyond tariffs, China has formally challenged the trade policies through the World Trade Institution (WTO) dispute resolution mechanism.

China’s Stance: Condemnation of “bullying” Tactics

China has strongly condemned the trade measures,characterizing them as a form of “bullying” that undermines the global economic order.

The imposition by the United States of the so -called mutual duties seriously violates the rules of the WTO, seriously damages the rights and legitimate interests of the members of the WTO e Seriously undermines the commercial system multilateral based on rules and international economic and commercial order.

Chinese Ministry of Commerce

The Ministry of Chinese trade emphasized China’s commitment to defending the multilateral trading system and urged the United States to rectify its actions and eliminate the unilateral tariffs.