Global stocks continue to slide as recession risks take hold

Global stock markets were in a tailspin on Monday after US President Donald Trump announced import tariffs targeting nearly all major countries. This move sparked greater anxiety over a global trade war and boosted recession risks affecting the world economy, Reuters reported. 

Market hopes that the tariffs would have a limited impact were dashed by Trump's comments. The US President is set to announce the initial duties on Tuesday and Wednesday, with the auto sector likely to be hit first, the news agency anticipated.

In response, investors have begun to pile into Treasuries and the Japanese yen as a hedge against looming tariffs. Fixed-income securities have become highly sought after, while riskier assets have been largely overlooked, Barclays expert Ajay Rajadhyaksha said in a research note.

On Monday, the S&P 500 index slipped by 0.6%, extending its losses from the week before. Reuters highlights that the chances of a global recession are now projected at 40%, driven by Trump's aggressive trade policies, which are likely to hit businesses and households the hardest.