Stock Markets Under Pressure
Global stock markets faced challenges on Thursday due to concerns over tariffs imposed by U.S. President Donald Trump, geopolitical tensions, and cautious moves from the Federal Reserve.
- Asian markets saw a decline, with investors avoiding risks.
- European markets showed mixed trends after a significant drop in the STOXX 600 index.
- U.S. stock futures also dipped slightly, indicating uncertainty.
Gold Reaches Record High
With investors seeking safe assets, gold prices hit a new record of $2,947.11 per ounce, marking its tenth high this year. So far in 2025, gold prices have risen 12%, following a 27% increase last year.
Trump’s Tariff Plans Cause Market Jitters
President Trump announced tariffs on several key imports, including:
- Pharmaceutical products
- Semiconductor chips
- Lumber
- Automobiles (set to begin on April 2)
These tariff threats have raised fears of a potential trade war, making investors nervous. Analysts believe Trump’s moves could be part of a negotiation strategy.
Geopolitical Concerns Add to Market Uncertainty
Markets became even more volatile after Trump called Ukrainian President Volodymyr Zelenskiy a “dictator” while discussing peace talks with Russia. This statement caused concern among European leaders and further impacted global investor confidence.
Currency and Interest Rate Trends
- The Japanese yen strengthened to its highest level since December, reaching 150.065 per dollar.
- The U.S. Federal Reserve remains cautious about rate cuts, with markets expecting the first rate reduction in September 2025.
- The dollar index fell slightly by 0.16%, reflecting uncertainties in U.S. economic policy.
Asian Markets React
Major stock indices in Asia ended lower:
- Japan’s Nikkei 225 dropped 1.2% to 38,678.04.
- South Korea’s Kospi declined 0.7% to 2,654.06.
- Hong Kong’s Hang Seng fell 1.6% to 22,576.98 after China kept its benchmark interest rate unchanged.
European and U.S. Market Performance
- France’s CAC 40 gained 0.4%.
- Germany’s DAX rose 0.3%.
- Britain’s FTSE 100 dropped 0.3%.
- U.S. stocks traded mixed, with the Dow Jones up 0.2%, while the S&P 500 fell 0.2%.
Auto Stocks Hit by Tariff Concerns
Trump’s tariff plans caused declines in major auto stocks:
- Nissan: -3.45%
- Mazda: -1.89%
- Toyota: -1.83%
- Honda: -1.59%
- Hyundai: -0.98%
However, Suzuki Motor gained 1.12%, boosted by news that the company plans to expand global sales by 30% over the next five years, mainly in India.
Energy and Commodity Prices
- Oil prices eased slightly, with U.S. crude at $71.94 per barrel and Brent crude at $75.83 per barrel.
- Wheat prices continued to rise due to concerns about cold weather affecting crops in Russia and the U.S.
Conclusion
Uncertainty over Trump’s tariffs, Federal Reserve policies, and geopolitical tensions continue to drive market fluctuations. Investors are being cautious, and safe-haven assets like gold and the yen are in demand. As the global economy faces potential trade disruptions, market volatility is expected to remain high.
Sources:
- Reuters
- AP News
- Market Analysts
