The dollar plummeted to a three-month low amid growing concerns about global trade tensions triggered by the US-Canada-Mexico trade war. The move was sparked by US President Donald Trump’s vow of reciprocal tariffs in his first speech to Congress since taking office.
Volatility gripped currency markets as investors fretted about the escalating tensions’ impact on the world economy. Key stock indices, including the S&P 500, Dow Jones, and Nasdaq composite, also suffered significant losses.
US stocks experienced a rocky session on Wall Street after the imposition of tariffs by the US government. The Trump administration raised tariffs on imports from Canada and Mexico, while doubling tariffs against China’s imports. The retaliatory actions sparked worries about a slowdown in the global economy.
In contrast, Asian shares largely recovered following the overnight losses, with Hong Kong’s Hang Seng index jumping 2.6% and Shanghai’s Composite Index climbing 0.6%. Other key markets, such as Tokyo’s Nikkei 225 and South Korea’s Kospi, also posted moderate gains.
The US President’s comments in his speech did not appear to have a significant impact on global markets. China announced its intention to maintain an annual economic growth rate of around 5% by 2025, signaling confidence in the country’s growth prospects.
Source: https://www.telegraph.co.uk/business/2025/03/05/ftse-100-markets-latest-news-uk-trump-tariffs-trade-war