US and European stock markets saw declines on Wednesday as investors expressed concern over the potential impact of President Donald Trump’s new tariffs. The dollar and oil prices also dropped, while gold, considered a safe-haven investment, nearly reached a new all-time high.
After slight gains in Tokyo and stability in Chinese markets, European stocks fell, led by Frankfurt, and US markets followed suit after opening.
Joshua Mahony, an analyst at Scope Markets, noted that the day was filled with uncertainty as traders weighed the possibility of retaliatory tariffs and a potential trade war.
Trump’s tariffs, initially expected to match those imposed by other countries, have raised concerns about global trade. US media reported that Trump might introduce blanket 20% tariffs or offer preferential treatment to certain nations. Additionally, the 25% tariffs on auto imports, announced last week, are set to take effect on Thursday.
The White House confirmed Trump will make an announcement at 4:00 PM (Washington time), after Wall Street closes, promising a new era of US industry. However, officials acknowledged that the final details were still being worked out.
The possibility of immediate tariff implementation could offer some market clarity, though analysts warned of potential retaliatory actions from other countries, which could hurt global economic growth and inflation.
Tesla Shares Drop Following Sales Decline
Tesla’s shares fell nearly 5% in early trading after the company reported a 13% drop in first-quarter auto sales. The decline was attributed to lower production during factory upgrades and a perceived decline in consumer confidence related to CEO Elon Musk’s ties to the Trump administration.
Key Market Figures:
Dow Jones: Down 0.3% at 41,850.20
S&P 500: Down 0.4% at 5,613.46
Nasdaq Composite: Down 0.3% at 17,399.32
FTSE 100: Down 0.7% at 8,572.49
CAC 40: Down 0.8% at 7,814.50
DAX: Down 1.3% at 22,245.82
Nikkei 225: Up 0.3% at 35,725.87
Hang Seng: Flat at 23,202.53
Shanghai Composite: Up 0.1% at 3,350.13
Currency and Oil Prices:
Euro/USD: $1.0819 (up from $1.0793)
Pound/USD: $1.2945 (up from $1.2920)
USD/JPY: 149.51 yen (down from 149.53 yen)
WTI Crude: $71.11 per barrel (down 0.1%)
Brent Crude: $74.31 per barrel (down 0.24%)
