Global stocks fell sharply on Thursday as investors reacted to US President Donald Trump’s announcements on tariffs, which are expected to impact global trade and economic growth.
The UK’s FTSE 100 share index plummeted 1.5%, while other European markets also declined, echoing falls seen earlier in Asia. Gold prices surged to a record high of $3,167.57 an ounce before falling back to $3,090.
Traders fear that Trump’s tariffs could stoke inflation and stall economic growth, leading to concerns about global economic impact. The dollar weakened against many other currencies, while the pound rose over 1% against the US currency.
The new US trade tariffs include a 10% baseline levy on imports from China and higher duties on goods from Vietnam. Shares in sportswear firms Adidas and Puma tumbled more than 10% and 9%, respectively, as their products are made in countries affected by the tariffs. Luxury goods firms Pandora and LVMH (Louis Vuitton Moet Hennessy) also fell.
Economists warn that the tariffs could affect US consumer spending, which is a significant contributor to global economic growth. The S&P 500 and Nasdaq futures markets indicate a potential fall of 3.2% and 3.7%, respectively.
Source: https://www.bbc.com/news/articles/cly1g63x7q8o