Global financial markets plummeted as fears of a full-scale trade war escalated, in light of the tariffs imposed by the US administration led by President Donald Trump, which was met with similar responses from China, thus fueling risk aversion among investors and increasing the chances of the global economy entering a recession. 
A number of analysts told Argaam that the market reactions were justified in light of these tensions, highlighting that the state of uncertainty pushed markets to large-scale sell-off wave, especially in Asian markets that are more sensitive to exports.
The analysts also believe that the Saudi market showed relative resilience despite the global woes, expecting the volatility to continue in the coming period until the path of trade negotiations between the major powers becomes clearer.
Global financial markets plummeted as fears of a full-scale trade war escalated, in light of the tariffs imposed by the US administration led by President Donald Trump, which was met with similar responses from China, thus fueling risk aversion among investors and increasing the chances of the global economy entering a recession.
A number of analysts told Argaam that the market reactions were justified in light of these tensions, highlighting that the state of uncertainty pushed markets to large-scale sell-off wave, especially in Asian markets that are more sensitive to exports.
The analysts also believe that the Saudi market showed relative resilience despite the global woes, expecting the volatility to continue in the coming period until the path of trade negotiations between the major powers becomes clearer.
