Bear market is here! US stocks have dropped for two consecutive days, and the Taiwan stock market may face a Black Monday. The National Stabilization Fund is fully committed to responding.
讀後心得
On the 2nd, U.S. President Trump announced reciprocal tariffs, causing global market volatility. Taiwan is expected to face the impact during the Qingming holiday period, with stock and foreign exchange markets likely to encounter selling pressure on the 7th. Whether the Taiwan stock market can maintain the 20,000-point level has become a focal point. The financial sector is highly tense, and an emergency meeting of the National Security Fund will be convened if necessary to respond. Moreover, the tax rate imposed by Trump on Taiwan at 32% exceeds expectations, which may heavily undermine investor confidence. Executive Yuan Minister Su Tseng-chang has reminded everyone to be mentally prepared. The National Security Fund will closely monitor both domestic and international market conditions and will assess market stabilization measures at any time.
The President of the United States announced the implementation of reciprocal tariffs on the 2nd, causing global turmoil. Taiwan is expected to be affected by this wave of tariffs during the Qingming holiday period, and the stock and foreign exchange markets are anticipated to face intense selling pressure on the 7th, particularly regarding whether the Taiwan stock market can hold the 20,000-point level, which has attracted widespread attention. Financial-related ministries are keeping a high level of vigilance and are ready to respond at any moment. If necessary, the National Security Fund will convene an emergency committee.
After Trump announced tariffs on a global scale, China immediately responded with the same tax rate. The U.S. stock market significantly declined last Friday, once again recording a drop of over 1500 points for two consecutive days, with a total market value evaporating by about $6 trillion (approximately NT$198.6 trillion). Additionally, international stock markets suffered similarly, with the technology stock index Nasdaq down more than 20% from its peak of 20,173.89 points on December 16, 2024, officially entering a bear market.
The Taiwanese stock and foreign exchange markets will be closed for two trading days after the Qingming holiday and are expected to encounter heavy selling pressure next Monday, particularly given that Taiwan's tax rate has reached as high as 32%, far exceeding market expectations, which will severely impact investor confidence. The Premier frankly stated, "Everyone should be mentally prepared to face a shock." The regular meeting of the National Security Fund originally scheduled for April 14 has drawn attention due to changes in the international political and economic situation.
During the closure of the Taiwan stock market, the National Security Fund will closely monitor changes in domestic and international political and economic situations, as well as market trading conditions in the U.S., Europe, and other places. While it is expected to hold a regular meeting on the 14th, if disorderly market conditions arise, the National Security Fund can convene an emergency meeting at any time to assess whether to execute market stabilization tasks. To stabilize the financial market, the Premier recently held a meeting, inviting the Central Bank, the Financial Supervisory Commission, the Ministry of Finance, and others to report on relevant financial measures.
The report analyzed the current state of Taiwan's financial system and its high correlation with the international market, and reviewed the relevant response measures one by one.