Global Markets Rebound After US Tariffs Spark Initial Sell-Off; Nikkei 225, FTSE 100, and Colombo Stock Exchange Show Recovery on April 8, 2025

Global stock markets experienced significant volatility following the announcement of US tariffs in early April 2025. On April 7th, the S&P 500 initially plunged, and the FTSE 100 also saw considerable losses. China retaliated with a 34% tariff on US goods, leading President Trump to threaten additional tariffs of 50% if China did not withdraw its measures. However, by April 8th, markets began to show signs of recovery. Japan's Nikkei 225 jumped by approximately 6% after a previous day's decline of 7.83%. Similarly, the FTSE 100 in London rose by 2%. In Asia, the Hang Seng Index in Hong Kong rebounded 1.51% after a sharp fall of 13.22% the previous day, its worst since 1997. The Colombo Stock Exchange also saw a positive turnaround, with the All Share Price Index rising by 3.19% and the S&P SL20 index increasing by 4.46%. This rebound occurred as investors reacted to the possibility of tariff negotiations led by US Treasury Secretary, Scott Bessent, which raised hopes for potential "good deals." However, the situation remains fluid, with ongoing concerns about the long-term impact of tariffs on inflation and economic growth.