BlockBeats News, April 1st, despite President Trump’s statement on “withdrawal within three weeks” igniting a retaliatory rebound in the global stock market, deep-seated anxiety about the global economic outlook has not dissipated beneath the surface of market prosperity. On Wednesday, the MSCI Asia Pacific Index saw its largest single-day gain since April 2025, and the STOXX Europe 600 Index also rose by 2.5%. However, the sluggish trading volume exposed the fragility of the rebound — taking the Korea Composite Stock Price Index as an example, the trading volume was only 80% of the average level of the past month. Investors are concerned that even if the US withdraws its troops, the shipping blockade in the Hormuz Strait will still be a long-term drag on the fundamentals. Currently, although Brent crude oil has fallen back to below $100, it is still about 37% higher than before the war.
Analysts from institutions such as Goldman Sachs and SMBC Nikko Securities pointed out that the structural rise in energy costs will squeeze corporate profits and weaken purchasing power. In particular, emerging markets in Asia that rely on energy imports saw outflows of up to $68 billion last month, a scale far exceeding the initial stages of the pandemic. As the earnings season approaches, the substantial damage of the war to corporate profits is about to be revealed, which could end the current “rebound” at any time. (Jinse)
