Global Markets plunge Amid Tariff Fears
Published: 2025-04-04
Global markets experienced significant losses Friday following the announcement of new tariffs,sparking concerns of a large-scale trade war and potential economic repercussions.
Market Overview
The global financial landscape is showing signs of distress as investors react to the latest trade developments. From Asia to Europe, major indices are feeling the pressure, with sectors like automotive taking a especially hard hit.
Asian Markets React Sharply
- tokyo: The Nikkei 225 closed down 2.75%, with automotive giants like Toyota (down over 4%) and Nissan and Honda (both down over 5%) leading the decline.
- Seoul: The Kospi Composite Index decreased by 0.86%.
- Sydney: The S&P/ASX 200 fell by 2.44%.
- China: Markets were closed for a holiday.
European Markets Open in the Red
Following a day of losses exceeding 3%, european markets continued their downward trend.
- Paris: The CAC 40 opened down 0.67%.
- Frankfurt: The DAX decreased by 0.44%.
- milan: The FTSE MIB fell by 1.34%.
- london: The FTSE 100 declined by 0.77%.
- Madrid: the ibex 35 gave up approximately 3%.
Wall Street’s Tumultuous Thursday
The tariff announcement sent shockwaves through Wall Street, resulting in the worst losses as the early days of the COVID-19 pandemic.
- The Dow Jones Industrial Average closed down 3.98%.
- The S&P 500 fell by 4.84%.
- The Nasdaq Composite plunged by 5.97%.
Oil prices decline
The oil market also felt the impact of the trade tensions.
- The American WTI barrel lost 1.60%, settling at $65.88.
- Brent crude, the North Sea benchmark, quoted 1.50% lower at $69.09.
- The price of Brent quality oil barrel, a reference for Europe, stood at $67.6, a 3.6% decrease.
- Texas crude fell 3.85% to $64.38.
Gold and Bitcoin See Mixed Results
Amid the market turmoil, conventional safe-haven assets showed mixed performance.
- The ounce of Troy gold fell 0.8% to $3,090, despite its typical refuge value.
- Bitcoin regained 2.5% and was trading at $84,500.
Expert Commentary
On April 2 it will continue to be a turning point in the history of world trade. trump’s ads have triggered an expansive wave,
said John Placeard, an investment specialist from Mirabaud.
Tariff Breakdown
the new tariffs vary by country, ranging from a minimum of 10% to an accumulated 54% in the case of China. Products from the European Union will be subject to tariffs of 20%.
