Global Markets in Turmoil Following President Trump's 'Liberation Day' Tariffs
- NexxtGen Markets
- Apr 4
- 2 min read
Here's your latest update from the team at NexxtGen Markets here in the City of London.
📈 Market Overview
On Thursday, April 3, 2025, global financial markets experienced significant volatility in response to President Donald Trump's announcement of sweeping new tariffs, dubbed the 'Liberation Day' tariffs. The measures include a universal 10% tariff on all imports, with higher rates targeting specific countries, notably China and the European Union .
📉 Equities
United States: The S&P 500 fell 4.8%, the Nasdaq Composite declined 6%, and the Dow Jones Industrial Average dropped 1,679 points (4%), marking the worst single-day performance since 2020 .
Europe: Major indices mirrored U.S. losses, with the FTSE 100 and DAX experiencing sharp declines.
Asia: Markets were also impacted, with significant losses reported across the region.
🛢️ Commodities
Oil: Brent crude fell to $69.38 per barrel, and West Texas Intermediate decreased to $66.13, marking the steepest weekly percentage drops since October and January, respectively. Concerns over a potential global trade war and its impact on demand contributed to the decline .
Gold: Despite typical safe-haven demand, gold prices experienced a downturn, reflecting the complex market dynamics at play .
💱 Currencies
The U.S. dollar weakened against major currencies, reflecting investor uncertainty and fears of a potential recession .
🏦 Central Banks and Economic Outlook
Economists warn of potential stagflation, characterised by rising inflation and slowing growth. The Federal Reserve faces challenges in responding to these dynamics, with market participants speculating on possible interest rate adjustments .
🌐 International Response
China: Strongly condemned the tariffs, stating they violate World Trade Organisation rules and undermine the multilateral trading system.
European Union: Expressed deep concern and indicated readiness to respond with countermeasures.
Canada: Announced intentions to impose retaliatory tariffs on U.S. goods.
📊 Investor Sentiment
Analysts express concern over the potential for a prolonged trade war, increased market volatility, and negative impacts on global economic growth. Investors are advised to exercise caution and consider portfolio diversification to mitigate risks.
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