Stock markets around the world mostly experienced declines on Monday as concerns about the global economy continued to weigh on investor sentiment. In the United States, the Dow Jones Industrial Average dropped by over 600 points, while the S&P 500 and Nasdaq also saw losses. European markets also closed lower, with the FTSE 100 in London falling by over 2%.
One of the factors contributing to the market declines was the ongoing trade tensions between the United States and China. The two countries have been engaged in a tit-for-tat tariff war, with no resolution in sight. This uncertainty has led to increased volatility in the markets as investors worry about the impact on global economic growth.
In a surprising move, China announced that it would cut its benchmark lending rate for the first time in over four years. This decision was seen as a bid to support its economy, which has been facing headwinds from slowing growth and the trade war with the US. The move helped to boost sentiment in Asian markets, with the Shanghai Composite Index closing higher.
Meanwhile, oil prices jumped on the news of China’s rate cut, with Brent crude rising by over 2% to $62.82 a barrel. This increase was also driven by geopolitical tensions in the Middle East and concerns about supply disruptions.
Overall, the market outlook remains uncertain as investors grapple with a range of economic and geopolitical risks. Analysts are keeping a close eye on developments in the trade war between the US and China, as well as other factors that could impact global growth.
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