Thu, 03 Apr 2025

Thu, 03 Apr 2025 Global stocks slide as Trump tariffs hit markets

Leading stock indexes in the US open more than 3% lower, following declines in Europe and Asia.
Global stock markets fell on Thursday due to concerns over US President Donald Trump's tariffs announcement. The FTSE 100 share index dropped 1.5%, while European markets followed Asia's lead and declined. In contrast, gold prices reached a record high, seen as a safer asset during turbulent times. Markets across Asia had plummeted after Trump's announcement, with the Nikkei in Japan down nearly 3% and Hong Kong's Hang Seng index 1.5% lower. Similar declines were observed in European markets, with Germany's Dax index down 1.9% and France's Cac 40 dropping 2.6%. The price of gold peaked at $3,167.57 an ounce before falling back to $3,090. Futures markets indicate US shares will open lower when trading begins later, with the S&P 500 expected to fall by 3.2% and the Nasdaq predicted to drop 3.7%. The dollar weakened against other currencies, while the pound rose against the US currency. The UK's trade associations expressed concern over Trump's tariffs, which they fear could lead to higher prices and reduced demand for British exports. Some economists estimate that US consumer spending, accounting for around 10-15% of global GDP, may be affected by the new tariffs. Luxury goods firms like Pandora and LVMH (Louis Vuitton Moet Hennessy) saw significant declines in their share prices due to the imposed levies on European Union and Swiss imports. Experts have questioned the US administration's decision-making process behind the tariffs, labeling it a "highly mechanical" reaction rather than a considered approach. They warn that this move may lower the policy credibility of the Trump administration and potentially send the US into a recession.
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