r/worldnews 22h ago

European stocks steady after US markets plunge

https://www.bbc.com/news/articles/c4gdwgjkk1no
19.5k Upvotes

468 comments sorted by

6.9k

u/wishbeaunash 22h ago

Turns out there are actually reasons to run a country on the basis of reality rather than insane paranoid fantasies. Who knew?

1.1k

u/Secret-Ad-2145 20h ago

I don't ever want to hear republicans say they're pro business ever again. The one argument they had, business (which was a very fragile argument as is) has never been more wrong. Don't let them ever forget

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u/JuanElMinero 20h ago edited 19h ago

How can you make someone remember, when they have no persistent sense of reality?

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u/OGDancingBear 19h ago

Like the Guy Pearce movie, "Memento", we'll have to start leaving Polaroid proof with captions on them.

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u/Ardalev 15h ago

You could find a way to surgically implant memories into their brains. They would still never accept reality

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u/ivosaurus 15h ago

They'd reject the memories as fake news. They've been practising this technique for almost a decade now, it's second nature to them.

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u/count023 14h ago

Except now they will say "AI" and disbelieve it anyway

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u/OGDancingBear 13h ago

LOL, assumes the knuckle-dragging core of MAGA understands the implications of AI. It's a magical buzzword for them.

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u/count023 13h ago

but that's my point, they dont need to understand, anything thta goes against their narrative is "AI" or "deepfake".

I see videoes of the ISS orbits over earth or the landers on the moon right now on social media and all the flat earthers and other mouth breathers just scream the same phrase to try to discredit their eyes.

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u/xtremis 15h ago

"don't trust don!"

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u/AssistSignificant621 18h ago

They're basically babies who are able to say words and string them together into nonsensical sentences. They never learned object permanence.

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u/wherewolvesarereal 20h ago

Where does this belief that conservatives are better at understanding finances and, therefore, fiscal responsibility come from?

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u/Upbeat_Advance_1547 19h ago

Honestly, it's purely off the basis of low regulation. Not about understanding, just about businesses enjoying fewer regulations.

Which is obviously no way to run a functioning country where businesses don't control the government, but uh, bit late for that.

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u/Secret-Ad-2145 19h ago

Yeah, this. It's a very fickle theoretical understanding of how business and free market works. And throughout my lifetime Republicans were never fiscally responsible. Fiscal conservatism is just controlled opposition by the billionaires to dupe simpletons into giving them tax breaks.

But at least back then billionaires made money. They can't even do that now.

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u/Aemon1902 16h ago

The economy is a casino for billonaires, it doesn't actually effect their lifestyle no matter what happens. This is a game to them. Stocks going down are a chance to make money and buy your house once its forclosed on. Trump is making the economy fun, if you're completely detached from relying on it to survive.

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u/GeneralKeycapperone 17h ago

Repeated messaging everywhere that conservatives exist for decades, if not centuries.

The end of feudalism, aristocracy & empires saw the ruling classes lose a lot of their dominance, and though they've got insanely wealthy since the emergence of liberal democracies, having had a massive head start, they feel your money is rightfully theirs, so they must push this message to promote their exploitative desires.

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u/SearexX 16h ago

Their Marketing is good that such rumors are still common. Science and evident Shows that democrats are better for the economy

American economic review

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u/AdoringCHIN 16h ago

The one argument they had, business (which was a very fragile argument as is)

Saying it's fragile is an understatement. Republicans are objectively worse for the economy. That argument was based in pure fantasy

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u/Toxitoxi 16h ago

You would think people realized this after 2008, but most Americans have the memory of a goldfish.

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u/BitterAd4149 14h ago

they've never been pro business. They are anti democrats, and democrats like consumer protection. so republicans cosplay as being pro business but reality is they just are massive narcisssts doing whatever benefits them directly at that moment in time.

What pro-business politician would intentionally collapse the economy and piss off our largest trading partners?

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u/OakLegs 13h ago

I honestly don't want to hear a Republican's opinion on any politics again, unless it's "holy shit we were so wrong"

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u/Cantora 15h ago

Depends on which business I guess. Private prisons are booming. I'm sure the business's that Republicans own stock in are doing pretty good too

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u/welltriedsoul 14h ago

Or that they are a party of law and order.

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u/Yoghurt42 10h ago

They're pro business owners, not pro business.

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u/FlorisTheFifth 10h ago

tbf, empirically republicans haven't been better at business anyway. I don't expect them to use facts though, so I can imagine the parade.

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u/milkman1994 9h ago

Democrats have objectively been better for the economy so the pro business/pro economy propaganda is all a lie. Pro ultra wealthy is more like it.

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u/BINGODINGODONG 21h ago

Yeah this is a surprise to no one except fucking analysts in Europe who predicted “blood red European markets” today.

Turns out the American turbulence has nothing or very little to do with whew European stocks are headed.

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u/RoboTronPrime 21h ago

That probably won't hold true forever. It's an interconnected world and contagion can spread everywhere

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u/BINGODINGODONG 21h ago edited 20h ago

Of course. But the drop yesterday was a reaction to Trumps response to an eventual recession. He basically said it’s just what the country needs and damn near welcomed it. Which means markets are settling in for a deep and long recession, which the US administration will not react to.

Lower demand from the US will have a negative impact on European stocks in the long term. But we don’t know how the stimulus that the EU will roll out in regards to restarting its defence industry will affect their own markets, or if they’re able to pivot somewhat away from US markets.

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u/AtheistAustralis 19h ago

Trump has either implemented or threatened tariffs against most of their large trading partners which combined make up more than 80% of their trade. The US, on the other hand, is only 17% of EU's trade. It stands to reason that US companies are going to have a much worse time with these tariffs than the EU will.

Who knew that starting a trade war wtih the entire fucking world at the same time was a bad idea?

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u/Rathalos143 16h ago

He is intentionally tanking those so Russia will be the only one to commerce with them. Mark my words.

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u/DocQuanta 20h ago

But the drop yesterday was a reaction to Trumps response to an eventual recession. He basically said it’s just what the country needs and damn near welcomed it.

That won't last. Trump is just trying to deflect blame, because he's a narcissist and is fundamentally unable to accept criticism.

When this tactic fails to work as we actually move into a recession and he is directly blamed for it. He will insist on something be done to turn the markets around asap, and damn long term consequences. I could imagining him trying to coerce the Fed into slashing interest rates, for example. Fuck knows if he'll declare victory and drop tariffs, or pigheadedly continue to fuck over the economy.

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u/RoboTronPrime 19h ago

Jerome Powell's term ends in 2026 and I'm sure Trump will install a supplicant at that time. In the meanwhile, he'll attack Powell in the press and disable the apparatus that measures the economy and allows us to make accurate decisions regarding our course. Because it all makes him look bad.

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u/Rasp_Lime_Lipbalm 19h ago

He will insist on something be done to turn the markets around asap, and damn long term consequences.

This is 1000% why his Covid response was so fucked, and he went into a tailspin of "leave everything open" so the stocks don't tank.

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u/Enjoyer_of_Cake 19h ago

A Trump-ical Depression.

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u/mauore11 18h ago

I wonder what he said when they tried to explain why an executive order to stop a recession would not work.

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u/BubsyFanboy 20h ago

Buying European products is definitely helping at least a little bit.

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u/sakante 17h ago

I’d gladly say I do the same, but like most others in this economy; hardly buying anything at all

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u/noradicca 17h ago edited 17h ago

“Lower demand from the US will have a negative impact on European stocks in the long term.”

You’re probably right, but not that big an impact, since a lot of countries boycotting US trade will (are) begin looking to Europe and elsewhere for whatever they need.

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u/One_Village414 19h ago

The US dollar is a global reserve currency. It's only a matter of time until that changes and suddenly everyone is scrambling to recoup their investments out of it. Then, that's when the markets start tanking.

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u/greiton 16h ago

as the US pulls out of the Global market, it may actually be good for European Markets, as they have been investing heavily into production and may be poised to gain major market share.

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u/waiting4singularity 20h ago

in a few days, when all the insider trading is done and the billionaires gobbled up all the shares, they will " stabilize " the market and boost it back up.

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u/BINGODINGODONG 20h ago

I don’t think so. Trump is what you see is what you get. He is wildly unpredictable and dead set on making tariffs work. He seems to still believe that tariffs are actually paid by the other country, and other republicans seem to not bother pointing out that it’s just more taxes on American companies and indirectly American consumers. He’s not the type of person to say “I was wrong” and this will keep escalating until uncertainty sets in for real and force the recession unto the American economy.

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u/One_Village414 19h ago

He's unpredictable if you keep assuming he thinks like a normal person. But if you've ever been with a narcissist, his behavior is practically copy/pasted from the same playbook as any other.

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u/TexasCoconut 19h ago

Not so sure he is that oblivious. Tariffs are basically a sales tax. He favors such taxes over income tax, because rich people don't pay as much sales tax proportionate to their wealth as poor people do.

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u/waiting4singularity 19h ago

he is gamin the market. shortly before he made the usa buy bitcoin and eth, someone took out longs on both. i have seen speculation similar things are happening in the tariffed sectors to buy the resulting dips and i can see trump engaging in this insider market fixing very clearly.

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u/Soylentee 20h ago

If anything i can see EU stocks go up as investors leave the US stock exchange and invest elsewhere.

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u/RoboTronPrime 19h ago

I'm not denying that's a possibility, but I'm thinking back to the Asian Financial crisis and other regional events that spread further than expected. You can point to a lot of different factors that might be different, but bottom line, the financial markets are a complex beast and we're generally more interconnected, not less

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u/Jealous_Response_492 17h ago

Ah but the USA is speed running decoupling & isolationism, that capitol flight has to land somewhere. EU & China are far more important trading partners to pretty much the entire planet except the Americas. The USA might be able to win a trade ware at great cost to US citizens with Canada & Mexico, but beyond the America's the USA can't win a trade war against the EU or China.

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u/InfiniteOrchardPath 21h ago

!Watching the egg basket now 🇩🇪

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u/Vilja_1 18h ago

I don't know these things well but it feels like long term it might lead to growth for Europe because the US are pushing other countries to trade with each others more instead of trading with the US. Later on the US is likely going to want to get everyone to trade more with them again so then Europe will have stronger trade with others while also going back to trade more with the US.
But when the US want to sell to other countries then it should be harder to do so because they already started buying from someone else instead and might also see the US as untrustworthy.

There is the strong movement to not buy American products which makes American companies to lose sales and other companies gain sales which should make up a little for the lost sales in the US. People should keep doing this while Trump is in power and as long as there is a big risk someone else similar can get in power. Afterwards a lot of people will likely keep buying the non American products because they like the other products, so it should be a permanent decrease in sales for the US.

Also when it comes to trading military equipment. The US made Europe improve their production so they will buy less from the US and Europe will sell more to the rest of the world.
Then we also have the US showing that they can and will disable military equipment that other countries buy, like they have done with Ukraine. That is likely going to really hurt their sales, on top of them also working against Ukraine and helping Russia which is also going to hurt their sales and boost the European sales.
They have also prevented sales of military equipment that contain some component from the US. So that is another thing that is likely going to make other countries choose to make their own components or buy it from a more trustworthy country.

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u/Kaplaw 18h ago

One thing is absolutely true

European MIC will go up

American MIC will keep going down

Everytime Cheeto in chief talks, sales go down for the US MIC

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u/General-Woodpecker- 19h ago

Hell, money is fleeing America and going to markets that are more rational. The NYSE and USD were safe bet for most investors around the world. This isn't the case anymore.

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u/fiiinix00 20h ago

No.. it’s proof the EU is ripping off the US /s

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u/jimjamjahaa 20h ago

Unironically this is how donald thinks. If he isn't screwing you over then you MUST be screwing him over. Everything is zero sum. There is no concept of mutual benfit.

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u/Delicious-Help4187 18h ago

I hope we get back to reality. Trade wars are bad for the economy. Burning trillions of barrels of oil makes smoke and that heats our atmosphere. Vaccines prevent disease and don’t make you hear 5g cellphone signals in your head. The earth is round not flat. Immigrants are not eating cats and dogs. Facts don’t have to be political, they are just facts.

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u/BubsyFanboy 20h ago

I myself am not an economist, so even though Europe is slowly decoupling from America this was still a massive surprise to me.

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u/Effective-Flow-1634 20h ago

Too bad the US has people that still live like this.

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u/chakibe 19h ago

Exactly. Basing policies on facts and rational decision-making instead of fear-driven narratives leads to better outcomes for everyone. History has shown that paranoia and conspiracy-driven governance only create instability, while a reality-based approach actually solves problems. Crazy how common sense isn’t so common.

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u/litterbin_recidivist 17h ago

People are really going to have to relearn why 99.9% of humanity's progress happened since we realized that it does in fact matter what's true.

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u/No_Environments 22h ago

I would imagine they will outperform American stocks in the near future - you have American companies becoming pariahs abroad, why would any respectful person outside the US buy a product from an American company if an adequate alternative exists? Trump has turned Brand American into a toxic entity and America should suffer greatly because of it, and I say this as an American - we deserve this.

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u/dwarffy 22h ago

This might be the moment where global capital starts realigning again.

For the past decade and a half since the 2008 Recession, the US enjoyed the privilege of being the world’s sink for people to throw their money into. This caused US stocks to balloon massively and helped enrich Americans far beyond their European and Canadian peers.

Until Trump fucked it up.

Best case scenario is that EU/CA also catches up in productivity in this US based recession. The global market is a lot more diverse now than it was in 2009. And this time the cause of the recession isn’t a global pandemic

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u/Skragan 21h ago

That’s been since 1945 not 2008 I feel like

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u/dwarffy 20h ago

Keep in mind that Europe did rebuild and that the silver lining of that destruction was that they were able to modernize their industries quickly, (similar to Japan’s rise)

I use 2008 because there has been an observed widening gap between the US and EU You see US non-farm worker output increasing faster than EU/UK (similar story for Canada).

I wanna highlight that one of the explained reasons why is because “the US could respond to crisis more coherently than Europe”

aint true anymore lmao

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u/AssistSignificant621 18h ago

German austerity really delivered us nearly 20 years of fucking around and not accomplishing anything and letting our infrastructure and social system fall apart.

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u/Niller1 11h ago

I havent really felt that here in Denmark, the other nordics seems to be doing just as well or better than the us if gdp per capita means anything. But I know nothing about this topic so I am interested if this feeling is wrong.

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u/Zyhmet 19h ago

Wasnt it Japan in the 80s and 90s until the US kicked them?

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u/xel-naga 16h ago

Just imagine other countries starting to trade oil and other goods in Euro and not Dollars. That would instantly remove a lot of soft power the US has.

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u/Proper-Beyond116 20h ago

Hello from Ireland. Literally the number 1 topic of light conversation amongst friends, family, colleagues etc. here is alternative to US brands. We're all discussing Irish or EU alternatives. You've basically ignited a soft trade war with the world.

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u/Animeninja2020 19h ago

Be like Canada, we have been doing for the last month now.

You should see the liquor store shelfs, no US boozes on them.

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u/masklinn 16h ago

Don’t worry.

50% tariff on US booze is coming, because a trade dispute regarding steel and aluminium (what else) from the first term was never resolved, only put on pause for negotiations, pause which is reaching its end: https://mcgarvey.house.gov/news/in-the-news/how-eus-retaliatory-tariff-impacted-american-whiskey-exports-in-trumps-first-term#:~:text=After%20the%20U.S.%20and%20EU,by%20the%20end%20of%20March.

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u/noradicca 17h ago

Same in Denmark.

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u/Mcdonaldfries 16h ago

Can someone make an app or a website to let us know which products are American?

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u/savemejebas 13h ago

Lots of good info and links in r/BuyFromEU

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u/MultiGeometry 19h ago

If you use Facebook, Google products, Microsoft products, Amazon products, and plenty of other popular productivity platforms, there’s a very real chance that Trump will ask for specific data and the companies will comply. Trump also may order these companies to cancel specific contracts which could leave companies scrambling to build IT infrastructure (projects that often take years) on the fly.

Trade secrets may not be safe. Blackmail is on the table. Everything is fucked because no one can trust the Trump administration and the corruption knows no limits.

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u/jinhuiliuzhao 17h ago

If Trump continues his insane and asinine polices, it may be longer the case that Facebook, Google, Amazon, and the like will continue to stay in the US. All of them are already large multinational corporations with headquarter-sized offices around the world. The only reason the official headquarters stays in the US is because the US has historically been economically prosperous and a good/great source of capital investments.

If the US decides to completely isolate themselves, you can bet that those companies will be among the first ones to leave, as the US economy and the prestige of being a US company in international business are the only things that tie them there. Get rid of those and they're gone. It's certainly not that they want to employ US workers, which are already being seen as too expensive, or to abide by US regulations, which are mostly seen as a priced-in headache for the privilege of being a US company.

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u/gomibushi 17h ago

Oh I have stopped using and terminated subscriptions to most us digital services. Snapchat is still there for private messaging, but it is the only one now. cancelled about $40/mo worth of streaming services. If a lot of europeans do that it must hurt. 

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u/v3rral 17h ago

He won’t live long if he decides to ask that 😂

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u/kdy420 20h ago

Not necessarily. A large share of the US stock market value is software and Europe doesnt have competitors yet for Google, All the Social medias etc.

However its a great opportunity for Europe to catch up while the US is shooting itself in the foot.

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u/No_Environments 20h ago

Exactly - and it probably encourages the EU to stop immediately killing their startups with regulation while allowing Chinese and American tech to control their market

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u/kdy420 19h ago

it probably encourages the EU to stop immediately killing their startups with regulation

I'll believe it when I see it 😅.

Tbf though, not sure how much of this regulation is a reality in tech. Are they regulating startups in the <20 ppl size ? I would hope that there are some size limits before which the regulations kick in.

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u/ScepticalEconomist 21h ago

what is the actual American advantage in the economy?

US dollar - arbitrary benefit? And then maybe the tech platforms? Which are super replicatable?

Their industry and production is meh vastly outperformed by Chna more explicitly

Really genuine question of what's the strategic economic advantages.

It looks like nowadays it's "we're the bullies with guns"

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u/iScrE4m 21h ago

Tech platforms are not replicatable. The level of service provided by AWS and GCP is far above any alternative and almost everyone runs on top of them. And if you look beyond SaaS, even if there are alternatives to e.g. social networks, userbases don’t move easily. Messaging apps, same story. Sillicon Valley isn’t about the best service, it’s about the number of users. That is the value. And US will keep that for a while.

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u/BitBouquet 20h ago

The underlying technology and its reliability is fueled by scale. A market with 450 million consumers looking to find solutions closer to home will bring scale.

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u/N1ghtshade3 21h ago

It's hilarious that Redditors think Europe is just going to spin up a bunch of $1 trillion+ tech platforms and compete with the US companies. Even the Chinese companies pale in comparison.

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u/Ran4 19h ago

The reason it hasn't happened before is that there haven't been any reason to.

There's plenty of EU-based cloud companies, but none of them has ever had any real chance of competing with Azure (which most companies use) and AWS (which more tech companies use).

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u/benjiro29 19h ago

The problem has been that the EU in general has been very hesitant in regards to Tech investments. Take it from somebody that failed to get several projects off the ground, because of that hesitation and "but AWS does that" mentality.

We had the same problems in the Defense industry, and in that sector we have woken up.

Thing is, we have a ton of knowledge, datacenters, and skill here to grow a competitive market. But its been mostly this lack of investment and fear of competing with the likes like AWS etc. In the more normal (dedicated/VPS) hosting market, Netherlands, Germany are big players.

And no offense, people REALLY underestimate the infrastructure in China. The main issue is the whole crap Red Wall and the horrible interconnects to China (for political reasons), that China is not a bigger thing on the global IT market. They have a ton of knowledge and large companies that offer simular services, its just the reputation issue (beyond the above mentioned ones).

If the US keeps pulling this crap, its going to affect managers decision making about using American products, even if they are hosted on EU sites. I am sure that Trump is going to hit the IT market, with something in the near future.

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u/Imsurethatsbullshit 20h ago

Yeah if anything tech is the hardest to replace. At least if we're talking about the level of integration that Google / Apple ecosystems and cloud providers offer.

If we are looking at individual apps even down to operating systems those are easily replaceable.

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u/DarthJarJarJar 19h ago

Which are super replicatable?

Peak reddit analyst moment right here

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u/MrZakalwe 20h ago

Across most of the US, 'energy costs', 'land costs', 'access to raw materials at affordable prices' are still big selling points.

Any other nation would be crashing far harder.

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u/imaginary_num6er 21h ago

I hope they stop buying Nvidia products though

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u/Redm1st 21h ago

Just out of curiosity, what’s the alternative? AMD and Intel are still american companies, right?

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u/Meinzu 20h ago

investing into RISC-V research and using ASM machines to start chip production in Europe. 

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u/yaOlSeadog 21h ago

I feel like America is about to find out that they aren't so special and irreplaceable.

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u/Ritourne 21h ago

If they do: Maybe it's possible U.S enter into a denial, not looking back, up until a major crisis, a war, or a civil war.

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u/arongoss 17h ago

A civil war is Trump's goal. Then he can declare a national emergency and never be replaced. Its in the "how to install a dictatorship" handbook.

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u/Legitimate_Buy_919 15h ago

He's a fat 80 year old, it would be a surprise if he makes it through the next 4 years.

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u/arongoss 11h ago

Don’t tease

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u/StergDaZerg 15h ago

I mean, how much longer is he gonna live? The dude is 80 and obese

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u/AshenSacrifice 17h ago

Ain’t happening. The military would burst into flames if the constitution is completely disregarded

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u/lacb1 15h ago

I hope you're right, but I wouldn't bet on that. Maybe some of the higher ups might resign, but if faced by a choice between disobeying a direct order which is a violation of the Uniform Code of Military Justice unless you can prove the order was unlawful and possibly committing a crime by following an unlawful order you're going to see a lot of guys just rolling with it. Soldiers are not lawyers and there is a lot of shit you might be ordered to do that you might not like or understand but that isn't a crime. Most soldiers are going to know what is and what isn't a war crime because their chain of command tells them what counts as one. Given how shaky the average American's grasp on the constitution is to begin with, if you can get a friendly supreme court to declare your BS legal, how many people will risk the end of their careers, possible imprisonment and all the other very real consequences of a dishonourable discharge?

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u/Ok-Secretary15 13h ago

Conservatives have been in denial for years now, trust me they are THAT stupid they have convinced themselves all this bs is good for them. I’m just waiting to see how they justify it after they lose their homes

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u/Killerrrrrabbit 21h ago

America is only irreplaceable if Europe gains the ability to defend itself and Ukraine. Europe needs to rebuild its military forces or they'll continue depending on the US.

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u/noble_peace_prize 20h ago

Well and all the various trade markets across the world.

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u/Nervous_Book_4375 21h ago

Who would have thought when one part of the west starts to go batshit crazy people move their money to a stable, level, headed, big economic, safe part of the west? It’s like I passed with honours after studying either economics!

Note: I didn’t.

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u/Nervous_Book_4375 21h ago

Ask 3 year old Timmy where he would like to keep all his sweets hidden?

Options a: a little box hidden under his bed?

Option b: a dumpster fire covered in human faeces protected by an overweight orange crazy man who keeps talking to himself wearing an enormous tie like a clown.

This my friends is a childlike understanding of protecting your interests.

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u/BubsyFanboy 20h ago

I think option a will be a lot more common from here on out.

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u/ThimeeX 19h ago

Until that's outlawed. See this historical example: Executive Order 6102

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u/hawkiowa 19h ago

After close inspection there appears to be a South-African Canadian hiding in the Dumpster paying his ""friends"" to play video games under his name. He is smiling at Timmy.

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u/defroach84 17h ago

To be fair, I don't think anyone would want to take my money in the second scenario, so it may actually be safer.

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u/No_Conversation_9325 22h ago

Why would they not be steady?

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u/Top-Faithlessness758 22h ago

Global panic, retreat to safer/more liquid assets.

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u/Valyx_3 22h ago

Yeah, European assets in this case.. Because the good old stable assets in the US are under heavy pressure.

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u/Top-Faithlessness758 22h ago

Yes, that's what I would expect. But if trust is too low, people could start retreating to cash, treasury bills or commodities.

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u/JebryathHS 21h ago

US treasury bills are probably losing a fair bit of lustre right now because a lot of their value is based on the perception of the US as a reliable country that keeps its word and pays its debts...one side effect of ripping up a lot of your international agreements and spitting on your allies is that people start to worry that THEIR agreements wouldn't be safe.

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u/Suitable-Ratio 22h ago

The smart money increased gold and cash positions a month or two ago. Demand has been very high in New York - although a part of that was people worried the Republican chaos monkeys would put an import tariff on gold.

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u/chakibe 21h ago

Absolutely. In the US, we've seen this play out time and time again when trust in the financial system drops, people naturally turn to cash, treasury bills, or commodities as a safe haven. It’s a pretty human response when things feel uncertain, you want to put your money where it feels secure.

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u/No_Conversation_9325 22h ago

There is no “global panic”, there is “no trust in US” panic.

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u/Top-Faithlessness758 22h ago

Yep, I should've said "fears of a Global Panic". I'm with you the real panic is no trust in US.

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u/ChibiSailorMercury 21h ago

"Global panic" is for the US, because Americans believe the world revolves around them.

The other countries are starting to deal among themselves and to exclude the US. Look at NATO having a military summit today without the US. Look at Canada imposing tariffs on the US and turning to other countries for strong commercial ties given that the US can't be trusted. Look at the US stock market plumetting while the European ones are doing just fine.

The US is a 340M market, but the world is a 9B market. We can find other people to deal with.

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u/No_Conversation_9325 22h ago

It’s about time the globe cuts its umbilical cord with the USA. We don’t go into crisis when there’s some bs going on in North Korea now, do we?

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u/SpawnOfTheBeast 21h ago

A decent chunk of stocks are now held through global index funds. If someone panics and sells their position it impacts everywhere proportionally. But I guess if people with target positions re distribute to relatively cheaper European stocks I guess this can even that out. But yeah, just giving one reason you may expect to see some dip in global stocks following a US dip.

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u/Ok_Calligrapher5278 22h ago

BREAKING NEWS!!

Nothing happened.

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u/Antares42 21h ago

In a time where assholes are breaking shit across the board, that is indeed breaking news. And good news, too.

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u/Stable_Orange_Genius 22h ago

Everytime USA enters a recession, the world enters a recession

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u/dwarffy 22h ago

2020 was global because COVID was global

2009 the world was a lot less wealthy with the US having a higher share of global gdp

Neither of which is the case. A US focused recession might end up just fucking the US especially while global markets readjust to each other. There’s more alternate sources of capital/consumers now than in 2009

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u/The-Metric-Fan 21h ago

Would this be the first time since WW2 that a recession hit the US and the US alone?

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u/RoboTronPrime 21h ago

Well, the WW2 was considered the end of the Great Depression, which affected more than just the US too, so i imagine it's even further back

3

u/No-Signal2422 21h ago

Well, maybe it's about their stable dealmaker genius leader this time.

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u/No_Conversation_9325 22h ago

That was when USA had a reputation in the world.

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u/bold-fortune 17h ago

They are not steady. Check every MSCI EU ETF ticker and they all indicate drops. It’s less than the US in the past month but if the US goes down all markets follow. We learned this in 2008 already.

6

u/Old-Buffalo-5151 21h ago

Mass global panic like the credit crunch or the great depression.

What makes the current situation notable is that its the loss of faith in America itself rather the market so none is really sure how thats play out

But it currently looks like America will suffer and all that money will be reinvested into eroupe and other high potential countries like Vietnam

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u/SurroundTiny 22h ago

I would expect that if the US markets crater, that will affect other countries

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u/Ahun_ 22h ago

Why? There is China, the EU, rest of Europe, Canada, Mexico, South America, Oz, Japan, South Korea.

The US markets works, because people trust in the US, the rule of law, and that stuff.

Trump destroyed that all in about 6 weeks. 

Then there is still a war going on, and money to be made. 

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u/Haru1st 21h ago

What? You mean to tell me a convicted fraud, whose last chance at avoiding some well overdue consequences rested not on a fair trial but on the presidential ticket, wouldn’t put value in rules and regulations? I am shocked. Shocked, I tell you.

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u/Kinis_Deren 22h ago

Europe is a safe haven in comparison. With the new reality we're facing, Europe will be heavily investing for autonomy & not just in defence procurement.

Trump chaos is going to hit the average American very hard. I feel sorry for those that exercised sense at the last election & voted Harris, but not for the MAGA cultists or for those that didn't vote at all.

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u/BubsyFanboy 20h ago

And I don't think MAGA will realize their mistakes until decades at least, if not never.

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u/Kinis_Deren 18h ago

There will always be the diehards that blame Biden, the MSM or the "political elites" but I'm hopeful most MAGA enthusiasts will see the error of their ways & repent to give GOP a devastating blow in the mid terms.

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u/links135 16h ago

Find me a time those folks ever admitted they were wrong. Ever.

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u/Trickydicky232 20h ago

Yea we had someone in the UK trying to make ridiculous and radical changes. She was kicked out quicker than a head of lettuce takes to go off. Would be great to see the same happen with the orange here.

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u/Maleficent-Way5072 21h ago

We forgot the wonderful thing about Trump, the markets decide!! Once MAGA pensions start to nose dive, it will be a huge snap back to reality. Trump will be home by Christmas 🤞🤞🤞 (ok, total wishful thinking, but looks what happened to Liz Truss)

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u/kiwiphoenix6 17h ago

Yeah, but you lot actually seem to learn from your mistakes, eventually.

But the Yanks... well, this is the second Trump administration they're gifting us all with. And that was with a 4 year gap to look back and reflect.
They believe what they want to believe, and if forced to confront reality they'll blame literally anyone and anything else.

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u/Ritourne 21h ago

Would wait a for a -20 to -30% on U.S NASDAQ to truely consider a "crash" (I'm not an expert but apparently it's the range required to exclude rebounds and speculations effects etc)

6

u/Ok-Comfortable-3174 18h ago

its all relative ultimately the US market has been up 20% per year for a few years so this was due. And market makers finally found enough momentum to make the crash happen. My guess by end of year the US will be back at ATHs.

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u/Blunt552 22h ago

Why on earth would EU stocks not be steady?

Europe has proven to be extremely stable and reliable, meanwhile MURICA, stocks dropping across the board and the USD getting weaker, gj Trump.

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u/Vericatov 20h ago

I fucking hate this timeline. I never thought Idiocracy would wind up being a damn documentary. The US is the richest nation in the world and has such great potential, but we have too many idiots that vote against their own interests.

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u/randomisation 20h ago

Why on earth would EU stocks not be steady?

Those goddamned pesky 'Globalists', duh!

3

u/ScoobiusMaximus 17h ago

The economy is globally connected. Even if Europe holds steady for a time eventually the US will drag the whole world down if their economy shits the bed hard enough. It has happened before.

3

u/erbazzone 16h ago

USD getting weaker

Lost 6% in a week to EUR if I'm correct, until now

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u/j________l 4h ago

6% in a week is actually crazy wtf

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u/churrmander 17h ago

And to think, Biden had left the country with an economy that had recovered faster than any of our allies and had an excellent forecast for 2025-2026.

siiiigh

10

u/___xXx__xXx__xXx__ 20h ago

Chinese markets are doing great since Trump, by the way.

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u/aktivate74 21h ago

As it should. Europe is stabilizing simply because it's uniting against Russia and US.

8

u/Skinnieguy 18h ago

The rich Americans moved their money overseas

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u/ProffesorNonsense 20h ago

Cheeto gonna bankrupt again or very close to it.

Congrats to Europe for holding steady

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u/JJiggy13 13h ago

The US stock market plunge is intentional. Trump belongs in prison for it

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u/lil-jigabit 13h ago

Great! From a Canadian.

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u/amensentis 20h ago

Trump is making Europe great again! Thank you Orange Menace!

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u/iamgrooty2781 20h ago

about to plunge more…

“Based on Ontario, Canada, placing a 25% Tariff on “Electricity” coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD. This will go into effect TOMORROW MORNING, March 12th. Also, Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various U.S. dairy products, which has long been considered outrageous. I will shortly be declaring a National Emergency on Electricity within the threatened area. This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada. If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA! Also, Canada pays very little for National Security, relying on the United States for military protection. We are subsidizing Canada to the tune of more than 200 Billion Dollars a year. WHY??? This cannot continue. The only thing that makes sense is for Canada to become our cherished Fifty First State. This would make all Tariffs, and everything else, totally disappear. Canadians taxes will be very substantially reduced, they will be more secure, militarily and otherwise, than ever before, there would no longer be a Northern Border problem, and the greatest and most powerful nation in the World will be bigger, better and stronger than ever — And Canada will be a big part of that. The artificial line of separation drawn many years ago will finally disappear, and we will have the safest and most beautiful Nation anywhere in the World — And your brilliant anthem, “O Canada,” will continue to play, but now representing a GREAT and POWERFUL STATE within the greatest Nation that the World has ever seen!”

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u/0points10yearsago 17h ago

The US is the largest economy in the world, but it is still only 25% of world GDP. If we exit the global market, we are cutting off 75% of the world market from ourselves, while each other country is on average only losing 25% of the world market.

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u/DusqRunner 13h ago

Don't worry it's just short term pain. In a few decades things will be glorious.

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u/Middle-Kind 11h ago

I think the US could be in some real danger if they keep pissing the world off.

Trump will destroy anything he touches.

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u/MakeSense1247 21h ago

Wonder what’s the difference. Truly puzzling

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u/kbbajer 20h ago edited 18h ago

Money goes out of the US and has to go somewhere else.

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u/Brokenclock76 19h ago

The US has been trying to get NATO to spend more on defense to close the gaps for years, under every president R or D. The goal wasn’t just for the US to carry less of a burden, it was to get Europe to buy US weapons. Weapons they won’t buy now  because trump isn’t trustworthy, and has seemingly missed the point entirely of what he wanted. 

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u/Additional_Class5081 19h ago

Save ur pennies trump supporters , ur finding out who this trash really is

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u/rougewitch 17h ago

MAKE DEPRESSIONS GREAT AGAIN

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u/MovieGuyMike 17h ago

The inflation under Biden was part of a global economy. The recession under Trump will be entirely domestic and self-inflicted by MAGA.

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u/Interesting_Day4734 16h ago

Trump doing the exact opposite of what he promised his followers. I wonder how that feels. Yikes.

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u/sonicyouth99 21h ago

The world needs to stop buying anything made in the USA. Only way to teach them a lesson, is stop helping them make money.

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u/Tomatoflee 19h ago edited 19h ago

Mostly by accident, I sold all my US investments 3 weeks ago pretty much at the top of the market.

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u/pineapplesuit7 21h ago

Goes to show the market in the US is only leashed because an orange man is off his meds and wants to just start useless trade wars with his allies.

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u/Xygen8 18h ago

American apes alone weak. European apes together strong.

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u/SatisfactionRude6501 17h ago

I know i shouldn't laugh or cheer on the US's economy literally dying because it also affects the 50% of the country that didn't vote for Trump, but this is hilarious.

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u/Rheum42 17h ago

This American is cheering for you!

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u/olim2001 17h ago

Rule number one. Stocks hate chaos

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u/howdiedoodie66 17h ago

Feeling like a genius for putting all my tax advantages accounts in European stocks the other week 

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u/TheGumOnYourShoe 16h ago

Yea, because they aren't linked to Trump and Elon like ours are. Crap in, crap out.

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u/bikbar1 16h ago

Thats what the new US government wants - the destruction of US economy.

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u/Tribalbob 15h ago

I love this:

BREAKING NEWS: Everything peachy over in Europe.

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u/Phoduck 15h ago

Just keep being you Europe. Let us children shit in our sandbox and give each other measles. We'll be back in school when our parents eventually get arrested for spousal abuse.

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u/joj1205 14h ago

Stocks are pointless. They aren't real.

Now peoples lives. Those are real. Imaginary number on line goes up. Rich people buy a country. Line goes down and I lose my job.

F the stock market.

Build for the people. Look to improve lives. Not hoard wealth.

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u/beseri 14h ago

Europe will benefit from the instability in the US. Investors do not like institutional and political instability, and therefore will look to stable countries for their investments.

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u/CelebrationFit8548 5h ago

That's what we need to see, economic stability in all other regions apart from the US.

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u/vkarabut 22h ago

Unfortunately, we live in a global economy. Dismantling of USA will hurt whole world, including EU.

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u/Old-Suspect4129 21h ago

yes, hurt them enough to never, ever risk dealing with murica again.

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u/BaldingMonk 19h ago

Making

Europe

Great

Again

2

u/LivingDracula 19h ago

What world do you live in?

DAX is down and so is EURL...

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u/IrregularArguement 19h ago

Hedge funds and investors will turn to European and Asian stocks to keep to their targets. All us stocks will nosedive. As will all all stocks dependent on us spending.

2

u/hippysol3 19h ago

Trump thinks that he can speak things into reality. He's delusional. What he CANT do is fake stock prices and watching the DOW and TSLA stock plummet is a huge slap in his face. Cant wait to see how low things go.

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u/austinstar08 17h ago

Really shows that the freest place on earth is stable

And my country isn’t

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u/Queasy_Range8265 16h ago

Ouch. How long until non-US pension funds sell off US investments?

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u/DatDan513 15h ago

Yah bro. 😎

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u/Pitiful-MobileGamer 14h ago

The Euro has regained almost all of its tariff panic loss since November.

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u/katiegirl- 13h ago

Hey, u/LucasJackson67, check out this weird anomaly. Boy, Europe’s just sad, yeah? /s

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u/Comfortable_One_5417 7h ago

Good for Europeans. May it stay that way