The collapse of the stock market in Asia and Europe today, Monday, after China responded to exorbitant US customs duties, restored similar disturbances in the stock exchanges after the Kofid’s pandemic and the recent global financial crisis.
Analysts considered the collapse “historically”, and some even described it as a “bloodbath”, recalling the collapse of previous markets since the beginning of the last century.
Today, Monday, European stock exchanges opened a collapse similar to the Asian stock exchanges, and the Frankfurt Stock Exchange recorded a decrease of 7.86%after it fell by more than 10%for a short time, while the Paris Stock Exchange lost 6.19%, the London Stock Exchange 5.83%, the Milan Stock Exchange 2.32%, the Swiss Stock Exchange 6.82%, and the Belgian 5%.
In Asia, the shares and bonds of Chinese companies decreased, while the return on treasury bonds decreased to its lowest levels.
The “Shanghai Al -Mujami 300” index of Chinese stocks decreased by 7.6%, which is the largest daily decline in 5 years, while the Hang Singh Main Index on the Hong Kong Stock Exchange and the Chinese stock index registered on the stock exchange recorded their largest decline since the global financial crisis that exploded in the fall of 2008.
The Japanese Nikki index fell today, Monday, to its lowest level in a year and a half, amid a decrease in the bank shares index by more than 17% during the session.
The Nikki index decreased by 8.8 % to 307 thousand and 92.74 points for the first time since October 2023, before ending today, low 7.8 % at 311 thousand and 36.58 points. It was closed to the decline in all the shares listed on the 225 -shares index.
2020: Corona epidemic
Global stock markets collapsed in March 2020 after the World Health Organization announced Kovid-19, which led to the imposition of closure measures in most parts of the world.
On March 12, 2020, the day after the announcement, Paris stock exchanges decreased by 12%, Madrid by 14%, and Milan by 17%.
The London Stock Exchange also decreased by 11%, and New York by 10%, in a decline in the worst since 1987.
The decreases continued during the following days, and the US stock indicators were more than 12%.
The rapid response from national governments that made unremitting efforts to preserve their economies helped to recover most of the markets within months.
2008: Moden Real Estate Crisis
The global financial crisis erupted in 2008 as a result of bankers in the United States granting high -risk real estate loans to people with stalled financial conditions, then selling them as investments, which led to a real estate mutation.
When the borrowers were unable to pay their real estate loans, millions of their homes lost, the stock exchanges collapsed and the banking system deteriorated, and the peak reached the bankruptcy of Lehman Prienz’s investment bank.
From January to October of that year, the world’s main stock markets decreased by rates ranging between 30% and 50%.
https://www.youtube.com/watch?v=m2yfbwuaom
The beginning of the millennium witnessed the shrinkage of the technology bubble as a result of pumping adventurous investors with their money into companies that were not proven.
From a record level of 5048.62 points on March 10, 2000, the NASDAC index of technology companies lost 39.3% of its value during the year.
Several emerging internet companies went bankrupt.
1987: Black Monday
The Wall Street Stock Exchange collapsed on October 19, 1987 against the backdrop of a large deficit in the American trade balance and the budget, in addition to high interest rates.
The Dow Jones index lost 22.6%, which caused panic in the global markets.
1929: Wall Street collapse
On October 24, 1929, it was known as “Black Thursday” in Wall Street after the collapse of an emerging market, causing the Dow Jones index to be lost more than 22% of its value at the beginning of trading.
The stocks regained most of their losses during the day, but the decline began to worsen. On October 28 and 29, it was also recorded in heavy losses in a crisis that represented the beginning of the “major depression” in the United States and a global economic crisis.
