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El Niño Hits Pacific, Threatening Global Markets

Bloomberg Markets •
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El Niño has erupted across the equatorial Pacific, the first since 2023, and signals months of drought, floods and heat that threaten global agriculture and power grids. The Japan Meteorological Agency flagged the anomaly, warning that the event could become the strongest on record for investors and businesses worldwide today.

The warming Pacific shifts weather patterns, already delaying the Indian monsoon and halting Peru’s fishing season. A 1997 El Niño killed at least 30,000 people and caused roughly $100 billion in worldwide damages, while a Dartmouth study projects lingering fallout that could cost the global economy trillions of damage today.

Strong events, defined by a 2°C or higher anomaly, are dubbed “Super El Niño.” Such heat can slash yields of palm oil, coffee, cocoa, cotton and staples like wheat and rice, according to Marex. The strain on supply chains and energy grids could push commodity prices higher for investors worldwide.

The Atlantic hurricane season may see increased wind shear, curbing tropical storm development. Forecasts project about 14 named storms, matching the long‑term average. Yet the potential rise to a “Super El Niño” heightens risks for U.S., Mexico, Central America and the Caribbean, demanding heightened preparedness for businesses and governments today again.