Global Stock Markets Retreat Amid Trump Tariff Concerns

AFP/APP

London: Stock markets across Europe and Asia fell on Tuesday, fueled by concerns over a potential trade war between China and the United States under President-elect Donald Trump.

Chinese stocks faced additional pressure due to Beijing’s lack of new economic stimulus measures.

Despite Wall Street reaching new heights on Monday, driven by expectations of tax cuts and pro-business policies, the uncertainty surrounding Trump’s proposed tariffs raised concerns.

Trump’s pledges to impose tariffs as high as 60 percent on imports from China have heightened fears of a rocky future for US-China relations and a potential downturn in global trade.

Markets in London, Paris, and Frankfurt saw losses of about 1%, while Hong Kong’s Hang Seng Index dropped nearly 3 percent.

The US dollar strengthened as a result of market speculation about higher inflation, which may impact the Federal Reserve’s plans for interest rate cuts.

Investors are also watching the US consumer price index report due on Wednesday to gauge the Fed’s next move.

Key Figures (1100 GMT)

London – FTSE 100: DOWN 1.0% at 8,043.41 points

Paris – CAC 40: DOWN 1.1% at 7,342.52 points

Frankfurt – DAX: DOWN 0.8% at 19,294.98 points

Tokyo – Nikkei 225: DOWN 0.4% at 39,376.09 points

Hong Kong – Hang Seng: DOWN 2.8% at 19,846.88 points

Shanghai – Composite: DOWN 1.4% at 3,421.97 points

New York – Dow: UP 0.7% at 44,293.13 points

Currency and Commodities

Dollar/yen: UP at 154.01 yen

Euro/dollar: DOWN at $1.0619

Pound/dollar: DOWN at $1.2820

Euro/pound: UP at 82.84 pence

Brent Crude: UP 0.6% at $72.27 per barrel

WTI: UP 0.6% at $68.47 per barrel