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18 hours ago
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Source: AFP
Stock markets and the dollar tumbled Thursday aft President Donald Trump's latest worldwide tariff salvo fanned a commercialized warfare that galore fearfulness volition spark recession and ramp up inflation.
The dollar slumped by arsenic overmuch arsenic 2.6 percent versus the euro, its biggest intraday plunge successful a decade, and suffered crisp losses besides against the yen and British pound.
On banal markets, Wall Street's tech-heavy Nasdaq Composite dove astir six percent, portion the retreat successful the S&P 500 was its biggest successful a time since 2020.
"The simultaneous diminution successful some stocks and the US dollar speaks volumes astir capitalist assurance successful Trump's commercialized policy," said City Index and FOREX.com expert Fawad Razaqzada.
Shares successful apparel companies, which trust connected inexpensive labour successful factories abroad, fell sharply with Nike sinking much than 11 percent and Gap tanking much than 20 percent.
Apple, whose iPhones are mostly manufactured successful China, fell implicit 9 percent.
Across the globe shares successful large sectors including auto, luxury and banking, besides took large hits.
Shares successful Jeep-maker Stellantis fell 7.5 percent aft it said it would intermission accumulation astatine immoderate plants successful Canada and Mexico arsenic 25 percent car tariffs came into force.
Tokyo's Nikkei concisely collapsed much than 4 percent. In Europe, some the Paris and Frankfurt banal exchanges finished the time with losses of much than 3 percent.
Oil prices plummeted much than six percent connected concerns an economical downturn would deed demand.
Gold, a harmless haven plus successful times of uncertainty, deed a caller highest of $3,167.84 an ounce earlier retreating somewhat.
Yields connected authorities bonds fell arsenic investors fled risky assets and piled into safe-haven treasuries.
Renewed complaint cuts?
The panic came aft the US president unveiled a blitz of harsher-than-expected levies aimed astatine countries helium said had been "ripping off" the United States for years.
The measures included a 34 percent tariff connected satellite fig 2 economy China, 20 percent connected the European Union and 24 percent connected Japan.
Source: AFP
A fig of others volition look specifically tailored tariff levels, and for the rest, Trump said helium would enforce a "baseline" tariff of 10 percent, including connected Britain.
"Markets, unsurprisingly person reacted badly," noted Richard Carter, caput of fixed involvement probe astatine wealthiness manager Quilter.
"(US) Treasury yields person fallen sharply, arsenic investors instrumentality formation and look for harmless haven assets.
"This would suggest the Federal Reserve volition request to enactment further complaint cuts connected the array to look to forestall recession being triggered, but should it look ostentation rising too, it is successful somewhat of a bind," Carter added.
As satellite markets tumbled, Trump acknowledged the daze brought by his tariffs, likening it to a aesculapian "operation," but said the US system would look "far stronger."
White House Press Secretary Karoline Leavitt appeared to regularisation retired the anticipation of Trump pulling backmost immoderate of the tariffs earlier they are implemented implicit the coming weekend.
"The president made it wide yesterday this is not a negotiation," she said connected CNN.
However, Trump aboriginal said helium would negociate "as agelong arsenic they are giving thing that is good."
Investors are bracing for retaliatory measures, but governments besides near the doorway unfastened for talks.
China vowed "countermeasures" and urged Washington to cancel the tariffs, portion calling for dialogue.
European Union main Ursula von der Leyen said the bloc was "preparing for further countermeasures" but she emphasised it was "not excessively precocious to code concerns done negotiations".
Key figures astir 2200 GMT
New York - Dow: DOWN 4.0 percent astatine 40,545.93 (close)
New York - S&P 500: DOWN 4.8 percent astatine 5,396.52 (close)
New York - Nasdaq Composite: DOWN 6.0 percent astatine 16,550.61 (close)
Paris - CAC 40: DOWN 3.3 percent astatine 7,598.98 (close)
Frankfurt - DAX: DOWN 3.0 percent astatine 21,717.39 (close)
London - FTSE 100: DOWN 1.6 percent astatine 8,474.74 (close)
Tokyo - Nikkei 225: DOWN 2.8 percent astatine 34,735.93 (close)
Hong Kong - Hang Seng Index: DOWN 1.5 percent astatine 22,849.81 (close)
Shanghai - Composite: DOWN 0.2 percent astatine 3,342.01 (close)
Euro/dollar: UP astatine $1.1050 from $1.0853 connected Wednesday
Pound/dollar: UP astatine $1.3099 from $1.3007
Dollar/yen: DOWN astatine 145.99 yen from 149.28 yen
Euro/pound: UP astatine 84.34 pence from 83.44 pence
West Texas Intermediate: DOWN 6.6 percent astatine $66.95 per barrel
Brent North Sea Crude: DOWN 6.4 percent astatine $70.14 per barrel
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Source: AFP
