Global stock markets fell the day after US President Donald Trump announced new sweeping tariffs. This is reported by UNN with reference to BBC.
Details
Stock markets in the Asia-Pacific region fell for the second day in a row, following the US S&P 500 index, which had its worst day since Covid hit the economy in 2020.
Nike, Apple and Target were the worst affected, all falling by more than 9%.
Motorcycle manufacturer Harley-Davidson, which was the subject of EU reciprocal tariffs during Trump's first presidential term, fell 10%.
Shares of Apple, which relies heavily on China and Taiwan, fell 9%.
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Among luxury goods firms, jeweller Pandora fell more than 10% and LVMH (Louis Vuitton Moet Hennessy) fell more than 3% after tariffs were imposed on the European Union and Switzerland.
Meanwhile, Japan's Nikkei 225 index fell 2.7% and Australia's ASX 200 fell 1.6%. South Korea's Kospi remained flat or slightly down.
On Thursday, the S&P 500 index, which tracks the 500 largest US companies, fell 4.8%, losing approximately $2 trillion. The Dow Jones index fell approximately 4%, while the Nasdaq fell approximately 6%. The sell-off in US stocks has been ongoing since mid-February due to fears of a trade war.
Earlier, the UK's FTSE 100 index fell 1.5%, with other European markets also falling, echoing declines from Japan to Hong Kong.
While stocks fell on Thursday, the price of gold, which is considered a safer asset in times of turbulence, reached a record high of $3,167.57 an ounce at one point on Thursday before falling again.
The dollar also weakened against many other currencies.
Following Trump's announcement of the tariffs, the World Trade Organization said it was "deeply concerned", suggesting that trade volumes this year could fall by 1%. Traders expressed concern that the tariffs could fuel inflation and halt growth.
According to analysts at Principal Asset Management, in Europe, tariffs could reduce growth by almost one percentage point, and hit even harder if the bloc retaliates.
In the US, a recession is more likely to come without other changes, such as the large tax cut also promised by Trump, warned Seema Shah, the firm's chief global strategist.
Addition
French President Emmanuel Macron called on EU companies to suspend planned investments in the US amid Donald Trump's decision to impose tariffs.