Stock markets faced challenges on Tuesday as concerns over US President Donald Trump’s renewed trade war threats against China, specifically in the technology sector, caused fluctuations. London stocks saw gains, while Paris and Frankfurt experienced fluctuations, with defense and banking sectors performing well. This followed a mixed session in Asia and New York. Global markets reacted to uncertainties surrounding US tariff policies and their potential impacts on global growth and inflation.
Trump’s announcement of intentions to impose tariffs on Canada and Mexico after the current suspension expires, along with restrictions on Chinese investments in crucial industries, heightened tensions between the world’s top two economies. This has raised fears of another trade war amid uncertainty about the global economic outlook. The Hang Seng Index in Hong Kong dropped over one percent, with key Chinese companies like Alibaba and Tencent seeing declines. Stock markets in Shanghai and Tokyo also closed negatively.
The market downturn was influenced by a negative session in New York, where major tech companies struggled following disruptions in the AI industry. Seoul’s stock market saw a retreat after the South Korean central bank revised its economic growth forecast and lowered interest rates due to concerns over US tariffs and the fallout from a past declaration of martial law. Bitcoin’s value fell below $90,000 amid fading optimism regarding potential deregulation in the cryptocurrency market.
In corporate news, Unilever’s shares dropped around two percent following the resignation of Chief Executive Hein Schumacher. Key market figures at 1100 GMT showed mixed performances across major indices and currency pairs. Euro/dollar, pound/dollar, dollar/yen, and euro/pound pairs all saw fluctuations. Crude oil prices remained relatively stable, with West Texas Intermediate flat at $70.71 per barrel and Brent Crude up 0.3% at $74.24 per barrel.