Global Stock Markets Experience Significant Declines Amid Tariff Concerns
On Friday, global stock markets continued to show a downtrend following a substantial sell-off on Thursday, primarily driven by new tariff measures announced by former President Donald Trump. Investors reacted sharply, causing notable declines across major indices.
Market Reactions Across Regions
The sell-off was felt across Europe, with the Stoxx Europe 600 index registering a 1.5% decrease early in the trading session. Germany’s DAX was not far behind, down by 1.4%. In Asia, the declines were equally pronounced: Japan’s Topix index fell by 3.4%, Australia’s S&P/ASX 200 dropped 2.4%, and South Korea’s Kospi lost 0.9%. This downturn has led to predictions of further declines in the US markets.
US Market Forecasts and Futures
Futures for the S&P 500 indicated a further drop of 0.6% on Friday, although this was expected to be less severe than the prior day’s losses, which marked the largest single-day decline for the index since 2020. Investors appeared to be shifting their focus to government bonds as a safe haven during these turbulent times.
Bond Market Activity
As a result of increased demand for lower-risk assets, government bond yields also experienced a decrease. The yield on the 10-year US Treasury fell below 4%, while yields on Japanese government bonds dropped by 0.17 percentage points, settling at 1.18%.
Oil Prices and Economic Indicators
In the commodities market, oil prices continued their downward trajectory, with Brent crude oil prices decreasing by 2.1%, now trading at $68.65 per barrel. This decline may be reflective of broader economic uncertainties exacerbated by the recent tariff announcements.
Upcoming Economic Data and Fed Analysis
Market participants will be keenly awaiting US labor market data, with economists from Reuters predicting the addition of approximately 135,000 jobs in March. Additionally, Federal Reserve Chairman Jay Powell is scheduled to address the market in the late morning hours, with analysts currently anticipating four interest rate cuts by the Fed by the end of this year—a shift from previous expectations of three cuts following the new tariffs announcement.
Currency Market Trends
In currency trading, the US dollar saw a slight increase of 0.2% against a basket of currencies, recovering slightly after experiencing a steep decline the day prior.