Global stock markets plunge as Donald Trump defends tariffs

Stocks across the board were sinking to new lows after Mr Trump said 'sometimes you have to take medicine to fix something'

Stock markets plunged overnight in Asia and investors are braced for further sharp falls in New York. Photographer: Michael Nagle/Bloomberg

Global shares plunged on Monday as investors grappled with the possibility of a recession after US President Donald Trump showed no signs of letting up in his aggressive trade war.

The pan-European STOXX 600 slumped 4.2%, down for the fourth straight session and on track for its steepest one-day percentage decline since the covid-19 pandemic.