The Pakistan stock market organized a solid recovery on Tuesday when the reference KSE-100 index increased 1609.39 points, or 1.4%, to reach 116,518.87 during trade within the day.
The market recovered from the strong fall on Monday, with maximum intradic at 116,692.29 and the minimums playing 115,706.47. The volume stood at more than 110.7 million shares, while the value of the negotiated shares crossed RS12 billion.
On Monday, the KSE-100 had closed to 114,909.48 after a strong fall of 3,882 points, caused by global economic concerns after the president of the United States, Donald Trump, introduced new rates.
The KSE-100 index faced a bloodbath on Monday, with the Pakistan bag (PSX) that reflects the growing global commercial tensions and the fears of a global recession.
When the president of the United States, Donald Trump, refused to retreat from his rates plans, China’s retaliation movements triggered the fears of a broader commercial war, which caused the markets to submerge throughout the world.
The Asian Variable Income Markets gave themselves a nose loop, European shares crashed with a shorter time of 16 months, and oil prices sank since investors worried that the duties announced by Trump last week could lead to higher prices, a weaker demand weaker and potentially triggered a global recession.
Goldman Sachs, along with other important investment banks, has increased the chances of a recession of the United States to 45% in the next 12 months.
JP Morgan economists estimated that tariffs can push the economy of the United States to a contraction of 0.3%, below their previous estimate of 1.3% growth of GDP.
Speaking about the matter, Trump commented: “I don’t want anything to fall. But sometimes you have to take medications to fix something.”
The world leaders reacted to the news with confusion, with China, the world number 2 economy, referring to tariffs as “economic harassment.”
