China’s stock market decline: On Monday, April 7, the Shanghai Composite Index fell by about 6.34% to around 3,130.17
The Hang Seng index fell from around 10.70% to 20,404, reflecting a significant loss in the Chinese stock market.
The Chinese stock market suffered a significant loss on Monday, April 7th. The broader Asian stock market recorded obvious losses as more investors fled the highly volatile global equity market into bond and gold markets. For example, the Shanghai Composite Index had fallen by about 6.34% to trade around 3,130.17 on Monday during the Asian initial trading session.
Hong Kong’s Hang Sen Index was heavily affected by the ongoing stock market defeat. At the time of writing, HSI had fallen about 10.70% to trade around 20,404.
Expected impact on Western financial markets
The European Union is set to announce mutual tariffs this week after China retaliated against US tariff trade last week. Some countries have chosen to negotiate with the US, but the major economy could follow in Beijing’s footsteps in the coming days.
As a result, the US stock market is expected to hit even more late today, particularly with key indexes led by the Dow, S&P 500 and Nasdaq.
“The Big Wall Street trading desk will reside in time for the futures opening tonight. They are preparing for more sales, intense sales. But we also hear stories about the “value” and how really good stocks are “sold.” But bearishness is clearly overwhelming emotion,” said Charles Gasparino, senior correspondent at the Fox and New York Post.
Impact on the crypto industry
The Crypto market is temporarily garnering trustworthy and valuable store titles due to its slow impact from the ongoing global trade war. However, Bitcoin prices fell below the key support level of around $80,000 on Sunday, causing a crypto liquidation of nearly $1 billion, with traders longest at $850 million involved.
The broader crypto market could continue in bearish mode as fear leads to more investors. Furthermore, on-chain data shows a massive liquidation of whale investors, while others flee to the stubcoin market.
