Access Bank reports central banks confronting significant shift, as investor panic triggers decline in global stock markets

Central banks are confronting a significant shift as investor panic triggers a sharp decline in global stock markets.

But while United States (US) President, Donald Trump, acknowledged the downturn, he stated that while he disliked equity declines, they may serve a corrective purpose.

However, sustained pressure could test public tolerance and intensify scrutiny on his administration, particularly given expectations tied to his economic agenda, according to a market commentary issued by Access Bank group.

Market volatility had reached extreme levels, and while such events were typically short-lived—especially if central banks intervene—they necessitate significant adjustments.

“This market disruption aligns with the Trump administration’s objective of reshaping global trade dynamics to compel nations to negotiate.

“The sell-off may achieve that, though escalation of trade conflicts could worsen conditions. A constructive response, with countries easing trade barriers, could facilitate a rapid recovery,” the report showed.

Looking ahead, two key factors would determine the outcome: central banks’ actions, which historically prioritised stabilising growth and market stability over inflation concerns, and nations’ responses to US tariffs.

A coordinated approach—central bank stimulus paired with trade renegotiations—could stabilise markets quickly.

Conversely, retaliatory tariffs risk prolonging the downturn, an outcome benefiting no party involved.

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