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European Markets Rebound as Asia Recovers from Sell-Off
European markets opened higher on Tuesday with Germany’s DAX, France’s CAC 40, and London’s FTSE 100 all showing gains after a significant sell-off on Monday.
Japan’s benchmark Nikkei 225 index soared nearly 11% on Tuesday, recovering from a sharp drop that had contributed to a global market slump on Monday. Other Asian markets also saw a rebound, though to a lesser extent, indicating a stabilization after the week’s turbulent start.
Monday’s market plunge was reminiscent of the 1987 crash, sparking fears of a slowing US economy. The Nikkei gained nearly 11% early Tuesday and was trading 10.3% higher by early afternoon as investors sought bargains after the previous day’s 12.4% drop. On Monday, the S&P 500 dropped 3%, marking its worst day in nearly two years, closing at 5,186.33. The Dow Jones Industrial Average fell by 1,033 points, or 2.6%, to 38,703.27, while the Nasdaq composite slid 3.4% to 16,200.08 as major tech companies like Apple and Nvidia experienced significant losses.
The global sell-off that began last week was further fueled by a report showing a slowdown in US hiring, raising concerns that the Federal Reserve’s prolonged high interest rates might be stifling the economy too severely. A report from the Institute for Supply Management on Monday showed slight growth in US services businesses, particularly in arts, entertainment, recreation, accommodations, and food services.
Professional investors cautioned that technical factors might have amplified the steep losses. South Korea’s Kospi index dropped 8.8% on Monday, and Bitcoin fell below $54,000 from over $61,000 on Friday. Even gold, typically a safe haven during market turmoil, slipped about 1%.
On Tuesday, nearly all Asian markets, except Singapore, saw gains. The Kospi jumped 4.3% to 2,546.64. Hong Kong’s Hang Seng index rose 0.5% to 16,775.65. Australia’s S&P/ASX 200 edged 0.3% higher to 7,677.50. Taiwan’s Taiex gained 1.2% after an 8.4% drop the day before. The Shanghai Composite index, which had largely bypassed Monday’s turmoil, was up slightly to 2,861.87.
The dramatic market moves reflect fears that the US economy might be harmed by the Federal Reserve’s high interest rates, leading to speculation about a possible emergency rate cut. The yield on the two-year Treasury, closely tied to Fed expectations, briefly sank below 3.70% on Monday before recovering to 3.89%.
“The Fed could ride in on a white horse to save the day with a big rate cut, but the case for an inter-meeting cut seems flimsy,” said Brian Jacobsen, chief economist at Annex Wealth Management, noting that such actions are usually reserved for emergencies.
Despite the recent declines, the US economy is still growing, and a recession is not certain. The stock market remains up significantly for the year, with double-digit gains for the S&P 500, Dow, and Nasdaq Composite.
Other factors contributing to Monday’s market plunge include the Bank of Japan’s recent interest rate hike, which led to a stronger yen and impacted global trading strategies. Big Tech companies, particularly those involved in artificial intelligence like Nvidia, saw sharp declines amid fears that their stock prices had risen too quickly.
In commodities, early Tuesday saw US benchmark crude oil up $1.18 to $74.12 per barrel, and Brent crude rising $1.00 to $77.30 per barrel. The euro edged up to $1.0956 from $1.0954.
As markets continue to react to economic data and global events, the path forward remains uncertain, but Tuesday’s gains suggest a temporary stabilization after a volatile start to the week.
News
Deaths of Two Algerian Resident Doctors Renew Calls to Reform Hospital Work Rules
The deaths of two resident doctors in Algeria within days of each other have renewed calls for urgent changes to working conditions in the country’s public hospitals, where medical unions say chronic staff shortages, long shifts and inadequate resources are placing healthcare workers under severe pressure.
Dr Aymen Badis, a resident neurosurgeon at Frantz Fanon Hospital in Blida, died of a heart attack after completing a 24-hour on-call shift. Days later, a resident anaesthesiologist died while working at Mohamed Lamine Debaghine University Hospital in Algiers.
Colleagues linked the second death to exhaustion and intense working conditions in social media posts. Algeria’s Health Ministry denied that the doctor had been working an overnight shift when she died, but the statement drew criticism from medical professionals who said it failed to address the wider pressure facing hospital staff.
The National Union of General Public Health Practitioners called for a comprehensive review of the on-call system, saying years of policies had contributed to exhaustion among doctors and nurses.
The union said the death of Dr Badis after what it described as an exhausting shift required an immediate response. It also urged authorities to revise the rules governing on-call duties, increase allowances and introduce a legal limit on shift lengths.
The latest deaths have added to a long-running dispute between Algeria’s medical community and the authorities. Doctors have reported working as many as 10 on-call shifts a month in understaffed departments, although some say they are paid for only six.
Resident doctors, who carry much of the daily workload in public hospitals, have also raised concerns about salaries, low night-shift allowances, broken equipment and overcrowded emergency departments.
Medical workers have been demanding changes to an executive decree introduced in 2013 that regulates on-call duties. The National Union of Public Health Practitioners has also called for a minimum monthly salary of 140,000 Algerian dinars for doctors.
The crisis is intensified by regional disparities. Specialist doctors and advanced medical facilities are concentrated in major cities, while inland provinces face shortages of both medical staff and equipment. Hospitals can wait months for repairs to MRI scanners and X-ray machines because procurement procedures delay the purchase of replacement parts.
Algeria has also faced a growing loss of medical professionals to emigration. French Medical Council figures showed that Algerian-trained doctors accounted for 38.8 per cent of non-EU-qualified doctors registered in France as of January 2025.
Doctors say the decision to leave is driven not only by pay but also by limited career opportunities, overcrowded hospitals and concerns over assaults against medical staff.
The deaths have placed renewed pressure on authorities to address working conditions and prevent the country’s public health system from losing more doctors to exhaustion and emigration.
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