Stock markets around the world fell to a minimum in nearly four weeks on Friday as investors bring unsettling U.S. tariffs and concerns about a global trade war increased.
U.S. President Donald Trump said Thursday that the 25% tariff on imports from Canada and Mexico will take effect next Tuesday to March 4, rather than April 2, as he suggested a day ago.
In addition, goods from China will face an additional 10% responsibility to “under” efforts to curb the flow of fentanyl – a threat that attracts A Beijing's keen reaction. The announcements come days after Trump imposed a 25% tariff on EU shipments.
See also: China vows to threaten Trump's 20% tariff next week
With questions about the latest earnings reports from chipmakers, tech stocks fell after selling out on NVIDIA and other big hats.
Bitcoin fell below $80,000 for the first time in three months, as optimism that the Trump administration will raise asset classes.
“A market that reduces sensitivity to recent tariff headlines must rethink this response function,” said Chris Weston, head of research at Pepperstone.
“Recent bias in risk indicates that disadvantages develop further.”
US dollar companies, gold and other currencies
Tariff fears will issue risk-sensitive currencies such as the Australian dollar slide, while the dollar has set its best week since late January.
Europe's Stoxx 600 fell 0.6%, after the index fell about 0.5% on Thursday. The technology's sub-index inventory glided 1.4%.
After nine consecutive weeks of rising, the Pan-European index was roughly flat in one week.
World stocks have been on track for their worst week since mid-December, down more than 2%. On Friday, the index fell to its lowest level in nearly a month.
However, higher U.S. stock futures suggest that Wall Street stocks should recover some ground after the previous day’s sell-off.
A solid dollar weighs on commodities including gold.
Watching the U.S. inflation scale
Although the threat of escalating tariffs has prompted the dollar's strength, it is also concerned about its impact on the U.S. economy.
The U.S. data has been softer recently, with traders lowering their reserves by pricing at least two quarters this year, as early as July.
Investors will keep a close eye on the Fed's preferred inflation scale – the PCE price index – which will be released later in the day. Monthly non-agricultural salary figures expire in a week from now.
In Asia, Japan's Nikkei fell 2.9%, buckling at the weight of the stronger sheltered yen, while Hong Kong's Hang Seng fell 3.3%, and mainland blue chips fell 1.9%.
Many analysts point to Trump's trade policy raising the chances of additional stimulus at the Chinese National Assembly next week.
The green index, which has hit 107.45 for the first time since February 13, with six major peers including the euro, the yen and Frank (including the euro, Frank).
The euro has fallen to its lowest level since February 13 after falling 0.8% on Thursday. The last trade was around $1.03.
In the euro zone, preliminary data on Friday showed that France's inflation rate fell 1% for the first time in four years in February. German and Italian data will be released later.
“It's interesting with the European Central Bank meeting coming next week,” said Nodia's chief analyst Jan Von Gerich.
“The market usually moves to these figures for the big country more than the final euro zone we get next week.”
Bitcoin's last time changed hands was weak at $78,984, hovering at its lowest point since November 10.
Gold sagged 0.6% to $2,856, the lowest since February 10.
- Jim Pollard's additional editor Reuters
See also:
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China, Asian market falls after Trump's latest China containment
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