European Stock Markets React to Anticipated Tariffs as Wall Street Shows Mild Gains
Investors brace for the implications of Donald Trump's tariffs, causing significant movements across global markets.
As global markets prepare for the anticipated announcement of tariffs by U.S. President Donald Trump, European stock markets exhibited noticeable uncertainty.
The European indices initially experienced considerable declines before partially recovering towards the end of the session, closing with general losses of around half a percentage point.
The anticipated tariffs, which range from a broad 20% to case-by-case implementations, have left investors in a speculative state, struggling to gauge the future impacts of these proposed measures.
The pharmaceutical sector, in particular, has been markedly affected, alongside telecommunications, industry, and banking stocks.
In Italy, the FTSE MIB index closed down 0.27%, with Leonardo, Recordati, and Amplifon among the worst performers, dropping 3.1%, 2.3%, and 2.2% respectively.
Insurance and banking shares faced selling pressure, while Banco BPM saw a modest gain of 0.2% following regulatory approvals related to Unicredit’s upcoming market move.
Other notable movements included Campari increasing by 3% on positive analyst coverage and Saipem rising 0.8% after securing contracts worth $720 million in the Middle East and Guyana.
On Wall Street, major indices experienced upward momentum despite the looming tariff announcements.
After a negative start, the Dow Jones increased by 0.26%, closing at 42,110.96 points, while the Nasdaq rose by 0.61% to reach 17,557.82 points.
The S&P 500 also reported a 0.39% increase, settling at 5,655.15 points.
Amazon shares gained 1.5%, driven by rumors of an offer for TikTok.
In the foreign exchange markets, the euro appreciated to $1.085 from $1.080, and traded at 162.90 yen up from 161.44. The U.S. dollar was valued at 150.05 yen, against 149.39 the previous day.
In commodities, gold remained near a record high at $3,128 per ounce, while natural gas prices decreased by 3% to €41.2 per MWh.
Oil prices fell slightly, with West Texas Intermediate (WTI) down 0.2% to $71.1 per barrel and Brent crude also down 0.2% to $74.3.
The spread between Italian BTPs and German Bunds narrowed slightly, ending the session at 109 basis points compared to 110 at the start.
The yield on the 10-year Italian Treasury bond stood at 3.81%.
Today marks what President Trump has termed 'The Liberation Day,' associated with tariff implementation.
Economists express concern that these tariffs could lead to increased prices for goods and services, potentially indicating a period of sluggish growth and elevated inflation for the U.S. economy.
Recent consumer sentiment data has reached its lowest level since 2021, suggesting a potential decline in consumer spending.
The official announcement regarding the tariffs is expected when European markets are closed, leaving investors anxious about the specifics of this new trade offensive.
The uncertainty surrounding this development has created a risk-averse sentiment, negatively impacting stock markets while bolstering demand for bonds and gold, which continues to reach new historical highs.
Today, attention will also be focused on remarks from European Central Bank policymakers, including President Christine Lagarde and Chief Economist Philip Lane, who are expected to address the ongoing economic situation.
Recent macroeconomic data revealed that inflation in the Eurozone has decreased to 2.2%.
In the United States, job data from ADP is anticipated to show a significant addition of 115,000 new positions in March, compared to 77,000 the previous month, potentially offering a positive outlook amidst growing concerns regarding the risks posed by the impending tariffs.
The European indices initially experienced considerable declines before partially recovering towards the end of the session, closing with general losses of around half a percentage point.
The anticipated tariffs, which range from a broad 20% to case-by-case implementations, have left investors in a speculative state, struggling to gauge the future impacts of these proposed measures.
The pharmaceutical sector, in particular, has been markedly affected, alongside telecommunications, industry, and banking stocks.
In Italy, the FTSE MIB index closed down 0.27%, with Leonardo, Recordati, and Amplifon among the worst performers, dropping 3.1%, 2.3%, and 2.2% respectively.
Insurance and banking shares faced selling pressure, while Banco BPM saw a modest gain of 0.2% following regulatory approvals related to Unicredit’s upcoming market move.
Other notable movements included Campari increasing by 3% on positive analyst coverage and Saipem rising 0.8% after securing contracts worth $720 million in the Middle East and Guyana.
On Wall Street, major indices experienced upward momentum despite the looming tariff announcements.
After a negative start, the Dow Jones increased by 0.26%, closing at 42,110.96 points, while the Nasdaq rose by 0.61% to reach 17,557.82 points.
The S&P 500 also reported a 0.39% increase, settling at 5,655.15 points.
Amazon shares gained 1.5%, driven by rumors of an offer for TikTok.
In the foreign exchange markets, the euro appreciated to $1.085 from $1.080, and traded at 162.90 yen up from 161.44. The U.S. dollar was valued at 150.05 yen, against 149.39 the previous day.
In commodities, gold remained near a record high at $3,128 per ounce, while natural gas prices decreased by 3% to €41.2 per MWh.
Oil prices fell slightly, with West Texas Intermediate (WTI) down 0.2% to $71.1 per barrel and Brent crude also down 0.2% to $74.3.
The spread between Italian BTPs and German Bunds narrowed slightly, ending the session at 109 basis points compared to 110 at the start.
The yield on the 10-year Italian Treasury bond stood at 3.81%.
Today marks what President Trump has termed 'The Liberation Day,' associated with tariff implementation.
Economists express concern that these tariffs could lead to increased prices for goods and services, potentially indicating a period of sluggish growth and elevated inflation for the U.S. economy.
Recent consumer sentiment data has reached its lowest level since 2021, suggesting a potential decline in consumer spending.
The official announcement regarding the tariffs is expected when European markets are closed, leaving investors anxious about the specifics of this new trade offensive.
The uncertainty surrounding this development has created a risk-averse sentiment, negatively impacting stock markets while bolstering demand for bonds and gold, which continues to reach new historical highs.
Today, attention will also be focused on remarks from European Central Bank policymakers, including President Christine Lagarde and Chief Economist Philip Lane, who are expected to address the ongoing economic situation.
Recent macroeconomic data revealed that inflation in the Eurozone has decreased to 2.2%.
In the United States, job data from ADP is anticipated to show a significant addition of 115,000 new positions in March, compared to 77,000 the previous month, potentially offering a positive outlook amidst growing concerns regarding the risks posed by the impending tariffs.
Translation:
Translated by AI
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