FTSE 100 LIVE: Stocks Head Lower as Traders Ramp Up Bets on Trump Recession
The FTSE 100 (^FTSE) and European stocks moved lower on Monday morning as traders and economists remained cautious about Donald Trump's tariffs on major trading partners and slashing the size of the Federal government, which may hurt growth. The American president said that the world's largest economy faces "a period of transition", echoing words used by Treasury Secretary Scott Bessent on Friday. Bond traders are now increasing their bets on a US recession as the trade war deepens.
- This downturn in investor sentiment could have far-reaching consequences for global economic stability, particularly if the Federal Reserve does indeed cut interest rates to mitigate the effects of the recession.
- What will be the long-term impact on global trade and economic growth if Trump's policies continue to escalate, and how will this affect the world economy as a whole?