US: Trump’s Policies Spark Recession Fears, Disrupting Global Markets

A new factor of global market unrest has emerged this week amid uncertainty over US President Donald Trump’s trade policies. Concerns about the trajectory of the American economy have led to a decline in stocks and government bond yields (as of March 10, 25), with worries about the health of the US economy due to Trump’s policies weighing on investors’ risk appetite, according to Bloomberg. Some analysts are now talking about the possibility of a ‘Trumpcession,’ or a US recession caused by Trump’s domestic and foreign policies. Although an economic recession in the US still seemed unlikely at the start of the year, concerns over growth and potential policy impacts are rising. Market indicators show Asian stock indices falling as S&P 500 futures declined by 0.4%, while tech-heavy Nasdaq 100 futures also dropped. Bond yields fell as investors sought safer assets, strengthening both the Swiss franc and gold, while oil prices neared their September lows due to weak data from China. Analysts debate whether Trump will adjust his policies if markets continue to falter, with some estimating a threshold known as the ‘Trump put’ that could force policy changes. Meanwhile, European markets gained support from Germany’s shift away from fiscal austerity and increased regional defense spending.