NEW YORK, New York - The knee-jerk introduction of trade tariffs by President Donald Trump continues to rattle markets with all the major U.S. indices recording major losses on Thursday.
"These tariff wars are intensifying before they're abating. It just adds to unpredictability and uncertainty, and that's a negative for stocks, obviously," Jed Ellerbroek, portfolio manager at Argent Capital Management told CNBC Thursday.
Following are Thursday's closing stock market quotes for the key U.S. indices:
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S&P 500: The Standard and Poor's 500 index dropped 77.81 points, or 1.39 percent, closing at 5,521.49.
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Dow Jones Industrial Average: The Dow Jones Industrial Average fell by 537.12 points, or 1.30 percent, ending at 40,813.81.
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NASDAQ Composite: The NASDAQ Composite decreased by 345.44 points, or 1.96 percent, to settle at 17,303.01.
Market Influences
The downturn in the markets was primarily influenced by President Donald Trump's announcement of a potential 200 percent tariff on European Union wine, champagne, and alcohol imports. This development has heightened fears of a global trade war, leading to increased market volatility.
Additionally, concerns about a potential economic slowdown have led investors to sell off shares in banks and brokerage firms. The KBW Nasdaq Bank Index dropped 1.2 percent, reflecting apprehensions about reduced spending and less robust growth impacting loan demand and market activity.
These factors have collectively contributed to the declines observed in major North American stock indices.
Euro takes a hit on FX markets as Trump tariffs take their toll
The global foreign exchange market on Thursday experienced notable fluctuations, influenced by escalating trade tensions and shifting investor sentiments, with the euro sold off on the back of new tariffs imposed by U.S. President Donald Trump..
Major Currency Pairs:
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EUR/USD: The euro weakened against the US dollar, declining by 0.33 percent to close at 1.0850.
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USD/JPY: The US dollar fell by 0.39 percent against the Japanese yen, ending at 147.65.
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USD/CAD: The US dollar strengthened against the Canadian dollar, appreciating by 0.42 percent to 1.4427.
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GBP/USD: The British pound saw a slight decrease of 0.08 percent against the US dollar, closing at 1.2947.
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USD/CHF: The US dollar edged up by 0.16 percent against the Swiss franc, reaching 0.8829.
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AUD/USD: The Australian dollar declined by 0.56 percent against the US dollar, settling at 0.6284.
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NZD/USD: The New Zealand dollar decreased by 0.43 percent against the US dollar, ending at 0.5702.
Market Influences:
The day's currency movements were significantly impacted by President Donald Trump's threat to impose a 200 percent tariff on European Union wine, champagne, and alcohol imports. This announcement intensified fears of a global trade war, leading to increased volatility in financial markets.
Additionally, the US dollar found support from a rise in US Treasury yields, as investors weighed the potential inflationary effects of ongoing trade disputes.
In Asia, the Bank of Korea expressed concerns over foreign exchange volatility stemming from trade war risks, highlighting the potential for significant capital outflows and heightened market fluctuations.
Overall, the foreign exchange market remains sensitive to geopolitical developments and economic indicators, with investors closely monitoring policy decisions and trade negotiations.
Global stocks end mixed Thursday, European markets notch up solid losses
Global stock markets on Thursday exhibited mixed performances amid escalating trade tensions and geopolitical uncertainties.
Canada Markets
- S&P/TSX Composite Index: Canada's S&P/TSX Composite Index declined by 220.11 points, or 0.90 percent, closing at 24,203.23.
UK and European Markets
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FTSE 100: The UK's premier index remained relatively stable, edging up by 1.59 points (0.02 percent) to close at 8,542.56.
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DAX: Germany's DAX index declined by 109.27 points (0.48 percent), ending at 22,567.14.
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CAC 40: France's CAC 40 fell by 50.75 points (0.64 percent) to settle at 7,938.21.
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EURO STOXX 50: The pan-European EURO STOXX 50 index decreased by 31.03 points (0.58 percent), closing at 5,328.39.
Asian Markets
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Hang Seng: Hong Kong's Hang Seng Index dropped by 137.66 points (0.58 percent) to 23,462.65.
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Nikkei 225: Japan's Nikkei 225 experienced a slight decline of 29.06 points (0.08 percent), ending at 36,790.03.
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KOSPI: South Korea's KOSPI Composite Index saw a minor decrease of 1.18 points (0.05 percent), closing at 2,573.64.
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S&P BSE SENSEX: India's SENSEX fell by 200.85 points (0.27 percent) to 73,828.91.
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FTSE Bursa Malaysia KLCI: Malaysia's KLCI advanced by 25.20 points (1.70 percent), reaching 1,510.03.
Oceania
Middle East Markets
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TA-125: Israel's TA-125 index rose by 13.80 points (0.54 percent) to 2,568.58.
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EGX 30: Egypt's EGX 30 increased by 241.60 points (0.78 percent), closing at 31,290.60.
Africa
Market Influences
The day's market movements were significantly influenced by escalating trade tensions, particularly President Donald Trump's threat to impose a 200 percent tariff on European Union wine, champagne, and alcohol imports. This announcement has heightened fears of a global trade war, leading to increased market volatility.
Additionally, geopolitical uncertainties, such as the skepticism surrounding the ceasefire between Russia and Ukraine, have further contributed to investor caution. These factors have collectively impacted global equity markets, prompting shifts in investment strategies and heightened demand for safe-haven assets like gold.
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