Global market crash: UK’s FTSE crashes over 5%; DAX down 4% amid global market meltdown

Global Market Crash: Stock markets in Asia and Europe crashed on Monday, April 7, as investor concerns over a potential global recession intensified, fueled by Donald Trump's escalating tariffs, which are worsening the trade war between the United States and other nations.

With no signs of de-escalation from major economies in the world, stock markets globally are witnessing high selling pressure, with investors flocking to less risky assets ahead of a potential economic crisis.

Global Market Movement

The FTSE 100 index of the United Kingdom tanked over 5 per cent on Monday, April 7. It was trading 4.92 per cent lower at 7,661.23 points, compared to 8,054.98 points at the previous market close at the time of writing this copy.

Germany's DAX index also tanked nearly 6 per cent on Monday, losing more than 1,100 points and was currently trading at 19,470.69 points, compared to 20,641.72 points at the previous stock market close.

On Monday, the Asian markets plummeted, with the Hong Kong-based Hang Seng index taking the biggest hit, losing over 3,000 points. The index closed 13.22 per cent lower at 19,828.30 points, compared to 22,849.81 points at the previous market close.

The Japanese Nikkei 225 index also lost more than 2,600 points, closing 7.83 per cent lower at 31,136.58 points, compared to 33,780.58 points at the previous market close.

US stock market today

After a bloodbath in the US stock market on Friday, April 4, investors are bracing for another weak start on Monday, April 7.

While experts believe that the benchmark Dow Jones index has entered the ‘oversold territory’, continued sell-off on Wall Street could even push the index towards 36,000.

On Friday, Dow Jones lost more than 2,200 points, closing 5.50 per cent lower at 38,315. The Dow Jones Futures were trading over 1,200 points lower on Monday, ahead of the US market open, indicating chances that the ripple effect of a global stock market crash can spark a mass selling in US stocks.

“The Dow Jones plunged over 5% last week, breaking the neckline of a weekly double top at 41,647, triggering a swift free fall. With a 15% decline over nine weeks, the index now sits in highly oversold territory,” said Anshul Jain, the Head of Research at Lakshmishree Investment and Securities.

“A sharp dead cat bounce is likely if the index sweeps last week's low at 38,264. However, if the selloff persists and the index sustains below 38,264, the next downside target aligns with the 50-month EMA near 36,000—a critical support zone,” he said.

Nasdaq Outlook today

For Nasdaq, Anshul Jain said the index has experienced a more than 21 per cent correction in the last six weeks and is likely to witness a temporary recovery at the current level.

“The Nasdaq has corrected over 21% in the last six weeks, including a steep 9.77% drop. The index has tested the key monthly swing low at 17,435 — a strong support zone. A dead cat bounce from this level looks likely. If the index sustains above the 17,435–17,500 range in the current week, a short-covering rally towards the 20-month EMA at 18,500 is expected. However, this bounce would be technical, not a sign of trend reversal,” said the stock market expert ahead of the US market open today.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.