Stock market today: Global shares skid as investors await more Trump tariffs
HONG KONG: Global shares were mostly lower on Friday as investors weighed uncertainties stemming from US President Donald Trump's latest tariff announcements.
Futures for the S&P 500 fell 0.4%, while those for the Dow Jones Industrial Average dropped 0.2%.
In Europe, Germany's DAX declined 0.6% to 22,537.65, and France's CAC 40 slid 0.5% to 7,950.56. Meanwhile, Britain's FTSE 100 rose 0.2% to 8,680.66, buoyed by retail sales and a smaller-than-expected trade deficit in February.
Thailand's SET index fell 1.1% after a powerful earthquake centred in Myanmar shook the region, prompting the prime minister to declare a state of emergency in Bangkok.
Tokyo's Nikkei 225 sank 1.8% to 37,120.33, driven by heavy selling of auto-related shares following Trump's announcement of plans to impose 25% tariffs on auto imports. Toyota Motor Corp. shares fell 2.8%, while Honda Motor Co. dropped 2.4%. A report showing Tokyo's inflation rate rose to 2.9% this month has heightened expectations that the Bank of Japan may raise its key interest rate at its May policy board meeting.
In South Korea, the Kospi index fell 1.9% to 2,557.98, with Hyundai Motor Co. losing 3.5% and Kia Corp. shares declining 2.7%. Hong Kong's Hang Seng index dropped 0.7% to 23,426.60, while the Shanghai Composite index also fell 0.7% to 3,351.31. Australia's S&P/ASX200 edged up 0.2% to close at 7,982.00, while Taiwan's Taiex tumbled 1.6%.
On Thursday, Wall Street closed with modest losses as Trump's tariff escalation created mixed outcomes for auto stocks. The S&P 500 slipped 0.3% to 5,693.31, the Dow Jones Industrial Average fell 0.4% to 42,299.70, and the Nasdaq Composite declined 0.5% to 17,804.03. General Motors saw a sharp loss of 7.4%, while Ford Motor dropped 3.9%.
Even US automakers are feeling the impact of the tariffs, as their supply chains extend across North America and beyond. Trump has stated his desire for more manufacturing to take place within the United States. However, uncertainties remain over how the US government will enforce tariffs on parts compliant with the free-trade agreement between the United States, Mexico, and Canada but not entirely made within the US.
Global stock markets are expected to remain volatile as the April 2 deadline for additional tariffs approaches. Trump has referred to this date as "Liberation Day," when he plans to introduce tariffs tailored to the United States' trading partners. He has described these as "reciprocal" tariffs, matching the burdens other countries impose on the US, including value-added taxes.
Stephen Innes of SPI Asset Management commented, "The burning question on every macro trader's mind is: what's really lurking behind the reciprocal tariff curtain?"
Despite concerns, there is hope that Trump may opt for more targeted or less severe tariffs to minimise harm to the global economy. However, the ongoing tariff discussions have already made US consumers and businesses more cautious, potentially impacting spending and economic growth.
Economic data released on Thursday showed slightly fewer workers applied for unemployment benefits last week than expected, indicating a stabilising job market. Additionally, a report revealed that US economic growth during the final quarter of last year was slightly stronger than previously estimated.
On Wall Street, Petco Health & Wellness surged 31.6% after reporting better-than-expected quarterly results.
In early trading on Friday, US benchmark crude oil fell 33 cents to $69.59 per barrel on the New York Mercantile Exchange, while Brent crude, the international standard, dropped 9 cents to $73.25 per barrel.
The US dollar weakened to 150.483 Japanese yen from 151.05 yen, while the euro edged down to $1.0779 from $1.0804.
By RSS/AP
